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One more question- 16 delta ?
Watcdy - Delta is a measure of how much the option price
will move in relation to a move in the underlying. It's complicated
but imagine that you are short a 16 delta call in SPY. In order to
neutralize the trade (sort of), you would simply buy 16 shares of
SPY against 1 short call...but then you would have to adjust as
I definitely wouldn't recommend jumping into SPX credit
spreads (short puts and calls) until you get some options trading
under your belt with smaller instruments. Try "TastyTrade.com" for
education. It's a great site and community - almost but not quite
as good as this one ;) Including a screenshot of a short SPX
trade I would put on today, if I wanted to add more shorts. Note
the trade characteristics in the left hand column. You can get your
a!@ handed to you pretty quickly, if you aren't careful. The short
call in this example is currently about 16 delta.
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