Hi ,
Been reading your options strategies ..
.. thanks for the write ups.. very informative... especially where this guy came up with the Billion dollar strategy..your explanation using delta made things simpler and more sensible ...
A few basic questions at this time..
1..We write an OTM Put ..market rallies upwards ... EOD..there a M2M on the Put.. does that get credited to the put writers a/c ?..
2. If one is sitting on a profit after writing a PE can one square it off by buying a PE at the same strike price and expiry?
3..If M2M does happen , and the market moves towards the strike price dailybut still not in the money , then daily the writer is going to have a M2M loss ?.. which gets reduced from his margin... ?
4..On expiry , if the PE is still not ITM , it obviously has only an intrinsic value .... so assuming (theoritically) from the time the PE was written ... the market slowly ..drifted down towards the strike price ..and yet remained out of it on expiry ... what will happen to the writer's daily M2M losses... ???
regards
Inside bar where the current bar is completely within the range of previous bar.
i.e. Current bar high < Prev Bar's high and
Current bar low > Prev bar's low.
Indicates consolidation in a range that was setup by prev days bar.
I am sure u can extend this concept and define Outside Bar.
Happy Trading