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De3NA t1_iy3jinu wrote

How large is your portfolio? What’s the difference between this and going long vs shorting

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NattyLightLover t1_iy3l6rf wrote

Options have a lower delta than stocks so they move less (dollar basis) when the stock makes a move, but they are leveraged so it costs less and thus move more (percentage basis).

If you hold a call you bought through expiration, you will buy 100 shares at the strike price of that option. If you have sold a call to open(short) and hold it through expiration, you will be assigned 100 short shares at the strike price.

If you hold a put your bought through expiration, you will be short 100 shares at the strike price. If you sell to open a put and hold it though expiration, you will be assigned 100 shares at the strike price.

With a short call and a short put, because you sold them, if your option gets assigned you still keep the premium.

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De3NA t1_iy3ohko wrote

So they’re playing IV? That’s why they have this return? Trying to dissect this

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