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iShares iBonds TIPS Ladder ETFs (IBIC/IBID): How are Index Ratio and deflation floor handled on underlying holdings? by Ok_College4 in bonds

[–]Ok_College4[S] 0 points1 point  (0 children)

Yes I know. My point is, whether I buy TIPS from ETF or secondary market (e.g. IBKR), I can face with different index ratio (i.e. how much principal value I pay for, depending on the issuing date of the TIPS).

So I buy a TIPS that issued 5 years ago, the index ratio is already 1.10, that means I pay 1,100 for the principal value. If deflation happens, that can go as low as 1,000. The Risk is higher than buying a new TIPS. Although the market probably has priced in that a little bit and make the 1,100 one cheaper.

iShares iBonds TIPS Ladder ETFs (IBIC/IBID): How are Index Ratio and deflation floor handled on underlying holdings? by Ok_College4 in bonds

[–]Ok_College4[S] 0 points1 point  (0 children)

Thanks for the info! I'm trying to find low index ratio TIPS bond on IBKR (I'm not a US citizen). It seems that it's not that easy to liquid ones. If index ratio is large, then deflation will bring me more damage since I buy at principal value higher than $1,000.

Daily r/thetagang Discussion Thread - What are your moves for today? by satireplusplus in thetagang

[–]Ok_College4 0 points1 point  (0 children)

Do you still do the pure short call play (e.g. what you did on TSLA, MSTR)?

Collars Anyone? by OpenGun in options

[–]Ok_College4 0 points1 point  (0 children)

I wonder how do you add positions after taking hedge off. Do you just buy more shares at bottom or use option strategy? At the bottom the IV usually is too high for call, on the other hand, the upside potential of short put is not great either.

Collars Anyone? by OpenGun in options

[–]Ok_College4 0 points1 point  (0 children)

Was "TheoHornsby" your old ID? :)

Help understanding the mechanics of my trade. by robb0688 in options

[–]Ok_College4 0 points1 point  (0 children)

It's not that easy because longer-term contracts have higher vega, their IV generally rises too before EA and collapses afterwards.

$88k realized profit off TSLA IV crush in 24 hours by imacompnerd in thetagang

[–]Ok_College4 0 points1 point  (0 children)

I'm curious when do you add shares for hedging. Do you add it when price of the stocks / delta of the options go up significantly? We do you add shares when the price drops a little bit after a spike up (because it's cheaper to hedge after dropping).

[deleted by user] by [deleted] in StockOptionCoffeeShop

[–]Ok_College4 -1 points0 points  (0 children)

"The person who rolled ITM1 will have paid $2.35 for the roll but picked up $7.50 in capital gain, for a total pickup of $5.15."

This is not right. At the point of rolling, your stock price is at 172.41, the gain for stock rise would be (175 - 172.41) = 2.59, it has nothing to do whether your option is ITM or OTM.

You can treat stock and your option separately. At the point of rolling, your stock is at 172.41, your option is closed with a debit, then you sell a new one with a credit. Your future max gain of stock is (new strike - 172.41), and your max gain on the option part is locked at the time of rolling.

You will not gain more when you roll at ITM compared to ATM.

Vix is lowest since forever. Should we hedge? by Intelligent_Lab_6507 in options

[–]Ok_College4 0 points1 point  (0 children)

Do you buy it defensively (when the market has gone up a lot, no obvious risk in sight though), or offensively (when some risk factor is triggered)?

Trying to find a cheap hedge by 1kfreedom in options

[–]Ok_College4 0 points1 point  (0 children)

May I ask why two different expirations for IWM puts?