Tag: options
Strategies
Concepts
Interview Questions
- The delta of a call minus the delta of a put
- Put-call parity, spot the free money
- A butterfly that costs less than nothing
- A call trading below its own intrinsic value
- Put spread bounds, when higher strike is cheaper
- Bounds on a call spread, spot the arbitrage
- How many shares to hedge 200 short call contracts
- Reading delta across deep in-, at-, and out-of-the-money
- What an option's delta secretly tells you about the odds
- Why gamma explodes for an at-the-money option at expiry
- The short-gamma book, income until it isn't
- How big a move do you need to break even?
- Adding up a gamma-scalping week
- Pricing the edge when realized beats implied
- The gamma–theta trade-off of a hedged option
- Implied vol is 18%, you think realized will be 28%
- Where does gamma scalping P&L come from?
- Why trade a variance swap instead of a hedged option?
- Short a straddle, then the stock gaps
- Implied vol is 30%, you think realized will be 20%
- Long gamma? No. Short vega into the Fed
- Collapsing a whole book into one dollar-delta number
- Put-call parity, the reversal trade
- Put-call parity with interest rates
- Put-call parity with a dividend
- Is this parity arb real after costs?
- Put-call parity spot check, find the arb
- Why is buying a straddle "long volatility"?
- Selling a strangle instead of a straddle
- Capping the tails with an iron condor
- What is left when you delta-hedge a short straddle?
- Why is selling a straddle "short volatility"?
- Collecting theta with a short strangle
- Quoting options vol into a binary drug-approval event
- Read the implied move off a pricey straddle
- Back out annualized vol from a straddle
- Straddle breakevens and which stock moves more
- Short the straddle when implied beats your view
- Read the expected move off a straddle price
- Why an at-the-money option decays faster as expiry nears
- What you make when implied vol ticks up a point