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	<title>Comments on: Option Trading Risks</title>
	<link>http://blog.poweropt.com/2006/03/06/option-trading-risks/</link>
	<description>PowerOptions offers you the convenience and control required to automatically sort, filter, and analyze all 2,800+ optionable stocks and 180,000+ options online to find investments to meet your profit goals.</description>
	<pubDate>Thu, 20 Nov 2008 12:33:26 +0000</pubDate>
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		<title>by: Greg Zerenner</title>
		<link>http://blog.poweropt.com/2006/03/06/option-trading-risks/#comment-148</link>
		<pubDate>Mon, 24 Apr 2006 10:33:24 +0000</pubDate>
		<guid>http://blog.poweropt.com/2006/03/06/option-trading-risks/#comment-148</guid>
					<description>Hi David:

It depends what system you were looking at for the delta. In general, the delta will increase toward 1 for a call option when the stock price rises and it will decrease toward -1 for a put when the stock price falls. Some systems show the delta as a positive number all the time and just assume that you will know if it is a put or call option.

On poweropt.com, we show the delta as positive for call options and negative for put options.

So, if you friends position was a positive delta and getting larger as the stock price rose, I would think that is a long call position.

Since the positive delta was getting larger for a decrease in stock price, that would mean it was for a put option, I am not sure if you could tell that it is short or long, unless the provider you were reading shows positive deltas for short puts and negative for long puts. I have never heard of this before.</description>
		<content:encoded><![CDATA[<p>Hi David:</p>
<p>It depends what system you were looking at for the delta. In general, the delta will increase toward 1 for a call option when the stock price rises and it will decrease toward -1 for a put when the stock price falls. Some systems show the delta as a positive number all the time and just assume that you will know if it is a put or call option.</p>
<p>On poweropt.com, we show the delta as positive for call options and negative for put options.</p>
<p>So, if you friends position was a positive delta and getting larger as the stock price rose, I would think that is a long call position.</p>
<p>Since the positive delta was getting larger for a decrease in stock price, that would mean it was for a put option, I am not sure if you could tell that it is short or long, unless the provider you were reading shows positive deltas for short puts and negative for long puts. I have never heard of this before.
</p>
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		<title>by: david</title>
		<link>http://blog.poweropt.com/2006/03/06/option-trading-risks/#comment-68</link>
		<pubDate>Mon, 10 Apr 2006 21:34:22 +0000</pubDate>
		<guid>http://blog.poweropt.com/2006/03/06/option-trading-risks/#comment-68</guid>
					<description>i was looking at a friends options portolio, and running some tests to see what losses could be. i was looking at the delta's, and as the price was going down the delta was becoming a larger and larger positive number. does this mean he was short puts?
thank you</description>
		<content:encoded><![CDATA[<p>i was looking at a friends options portolio, and running some tests to see what losses could be. i was looking at the delta&#8217;s, and as the price was going down the delta was becoming a larger and larger positive number. does this mean he was short puts?<br />
thank you
</p>
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