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Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: Poet who wrote (6008)4/4/2000 8:36:00 PM
From: SecularBull  Read Replies (1) | Respond to of 8096
 
The "house" wasn't financing any margin calls today, Poet.

I'm not interested in getting into a heated argument, I just want to be sure that the risk of selling puts and calls is understood by all those who would undertake such a strategy. I know that you understand it, but not everyone here is as sophisticated.

Regards,

LoF



To: Poet who wrote (6008)4/4/2000 9:36:00 PM
From: rkral  Read Replies (1) | Respond to of 8096
 
Poet,
In very volatile times like these, when deltas are terribly inflated, selling options takes advantage of both the inflated delta and the inevitable time decay of the option.

How does inflated volatility lead to increased delta?

Does it apply to both puts and calls? to both ITM and OTM positions?

Is it significant to anyone not taking delta-neutral positions?

Regards and TIA,
Ron


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