re: rembrandt .eto help please ... argustuft2 I guess we differ on what we consider to be fair value - I don't think the premium represents good value.
You would need a fairly sudden and substantive move for the option to increase in IV.
Certainly, your recommended RIOLM provides some buffering - but not enough - in my view - to offset the option premium and - in the absence of a substantive move in IV - to offset the tendency of the option to revert to fair value over the life of the option.
I guess buying ATM or ITM offers the best protection in these circumstances - and while people might baulk at the higher price of the option - as you noted - it's a false economy to buy too far OTM.
re: rembrandt .eto help please ... argustuft2 I guess we differ...
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