What risks are unhedgeable?
‘Those are both the same strategy (iow non-leveraged long delta with a theta&Vega hedge).
Goal: Net + PnL Strategy: Use delta and/or theta and/or Vega to achieve goal. Tactics: indicators (ticker trends, IV, HV, etcc),...
“2% loss” guideline refers to amount of risk per trade. "Amount of risk” is a function of structure (e.g. absolutely defined risk, stop loss...
Seems if you’re decent calling direction, you should trade delta for PnL. If you’re an unlucky investor, you should hedge your delta feelings...
Agreed, those are strategy descriptions perhaps very simply described at least as "Term and/or vertical IV Skew" and both would be much more...
Those are the main trading/investing profit seeking "strategies" (iow root causes and sources of PnL). Iron condor, strangle, etcc are somewhat...
The only 3 strategies available are delta, theta, and vega. Throw in long vs. short and many basic structures are available.
Possibly best to learn/use a good options platform (e.g. ibrk or Tos) as they have a built in models for assessing/managing the all major P&L risk...
IWM or RUT
afaik, In thinkorswim net liq assumes everything closed at instantanously available prices (e.g. bid for necessary sells, ask for necessary buys,...
Theta is rate of change for extrinsic value only (iow time value). Some single options or spreads will only ever have extrinsic value (e.g....
What TOS calls “IV Percentile” is calculated basically the same as what TW calls “IV Rank”. TW has both “IV Rank” (e.g. where located within the...
Love this! I wish I had read this somewhere 6 years ago. Good and useful post better that many on any trading forum!
Try grids with cursor lock
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