Short-selling DITM options
Options | Elite Trader
isn't it a good idea to short-sell deep-in-the-money (DITM) options?...
No, a 2nd thought says me that it's a silly idea... So, forget it, folks, sorry...
Selling DITM verticals
I had to rewrite this post due to some confusion on my behalf.While tinkering with verticals it occurred to me, what if I sell a very deep ITM vertical? So I checked it out, and the risk/reward seems to me too good to be true. Is there something I am missing?If I got this right I would b...
Deep in The Money Options
Hi Does anybody use Very Deep In The Money Options as a hedging tool? We know DITM Options can be used as a Stock replacement but what about using it as a hedge? against a holding you may have! DITM means with delta of 0.9-1.0 Anybody tried / back tested that
DITM, is gamma more important than Delta if I am scalping
I buy 20-100 Contracts at a time, wait for a 3-200cent drop (usually closer to 3-7 cent) and to do this, I buy DITM (options on call or put side) with very high deltas to get that quick price reaction. My question is, there are options that are not as DITM and are obviously cheaper but have lowe...
Protecting a DITM call spread
Position: ES Option 2200-2260 call spread, 8 DTEI would like to solicit advice on protecting a deep in-the-money call spread. The position has accumulated a maximal amount of deltas. The market is ranging, but a quick move down can erase a lot of profits.The short call is ATM and bleeding...
Balancing DITM with Expiration
Question is an age old one. If you are trading short term, either intra day or no more than an overnight hold, it's best to pick DITM to mimic the underlying price penny for penny (1 gamma).Assuming very limited capital for a small retail trader which would you pick:1) Current/following w...
First DITM Stock Replacement Buy
I am looking into buying my first DITM option as a stock replacement strategy. In order to not make any major mistakes doing this the first time, I was hoping to get some feedback/critiques on my first strategy.get I want to get DITM calls on SBUX in order to profit from any rise in the stock...
Avoid low volume options?
Some of the DITM options are very thinly traded say under 10 contracts per day. Should you avoid those even the underlying is actively traded like SPY, QQQQ?
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