i do a virtual trade using IB on IWM.

short gut IWM june Options back to early March.

S.Call 50
S.PUT 90

I might ask stupid questions, but for new student like me, i really curious to know the fact:

i saw the s call 50 to 55 the premium almost the same. Same as the Put 85-90 the premium price.

But i remember Sun told the time value. Although the premium price almost the same but when you use 90-55 and 80-60 you can see the narrow "clamp" provide more time decay value??? Sun, am i right? Need ur confirmation.

the second question i wish to double confirm with u all:

the chart tell the truth. using previous chart records, those extreme high and extreme low are good for us to use as reference to Short at what price.

So, my question is: if the price break up or down of those previous extreme high / low , it simply indicate strong momentum up/ down due to price action. Why don't we just close it since we know it will become directional up/down strong move given the price break new high/low?

And, Why Sun told we can repair it but not just close it? I am still not clear about this repairing, that is: if you repair it using next few months contract, where the other leg(here i put legA) remain at the same month, does it mean we need to open contract for the legA which will going to expired next time? So, my imagination is that it will be no ending story, both leg keep on brought forward by opening new contract while expired??


Your advise and explaination is much appreciated.

thanks

Good day to you, NDtrader,

I am sorry for not relying your message, I just came back from Australia.

I will go through your questions and provide a reply in 1-2 days.

I open this session for others to answer, anyone is welcome to post your opinions.

Sun

Hi Sun, hi NDtrader, hi everyone,

I also just returned from two weeks holidays in Japan. I believe Sun enjoyed the holidays in Australia as much as I did. I do not feel like working, not even trading.

The market has been up and down for past 2 weeks, and all my portfolio is still in the short guts range. I really enjoyed the time decay while I was on holidays. I did not trade at all because internet in the hotel is x#$ expensive in Japan. I used handphone (GPRS) to check the portfolio.

I will add to the comments once I recharge my lost energy in Japan. See you next week.

Hanz

I forgot, watch out, tomorrow is Friday, the 13th! Watch your short call, repair it if it is too near for comfort!

Hi all,

Glad to hear from you all again.

Yup, thanks for reminding us for the black friday 13th, must be something "bad" happen.

In KL, it would be a Pas-led marching to KLCC to protest the oil fuel stuff. Seems like not a good day.

Rgds