And they need to be informed bets and constantly revised. Don't fall into the trap of Long Term Capital Management, which treated mathematical...
As I said above. The Greeks are like your motorcycle's gauges. They help make sure you won't blow up your drivetrain, but they're useless if you...
Which is why I recommended being gamma-delta neutral. Less gamma equal less change in delta equals less rebalancing equals less transaction costs.
You'd better pay attention to the Greeks! Theta literally tells if time is making or costing you money. Dynamic delta hedging helps you make...
I'm prepared to risk $15,000 total of Reg T margin (I'm not yet eligible for portfolio margin as I have <$100K and only 1 year of options trading...
Thanks. That makes sense. Sometimes I think I have $1.5M and 30 days per position, and try to risk manage accordingly.
Well, my goal is to minimize my risk, not avoid it entirely. Probably by being gamma-delta neutral, long or short vega depending on my...
So I'm going to limit my thetas to -$300/day. What about vega, gamma, and delta? Should I have a limit on positive theta?
I'm trying to figure out how to determine my Greek position limits in order to do effective financial risk management. I can risk $15000 per...
Try gamma-delta neutral positions; they should reduce the need to rebalance the delta....
Hi guys! I'm wondering how to play an IV crush post-earnings. Obviously the strategy needs to be gamma-delta neutral, short vega, long theta,...
Is there anyway I can make a limit order that can ONLY be filled at the specified price, and not any higher or lower?
Can OTO orders be used to move prices? Like let's say XYZ is trading at $9.99x100-$10.00x75. Let's say I place a buy limit at $10.05x300 that...
Elaborate, please. I'd write puts when IV is low, and if I get assigned, I'll wait for IV to rise, at which point I'll write calls.
Just closed the trade. BTC'ed the short call for $2.18, so I made a $0.54/share profit. STC'ed the long put for $0.77, so I made an $0.11/share...
I stand corrected. I researched more about that quote, and it's a myth...most options are closed out prior to expiration, and only about 25%...
That's why I'd prefer to be a strangle buyer when trading earnings IV. Limited risk, and gamma scalping can hedge. When trading earnings vol,...
Elaborate on your first statement...I'd be trading IV, not direction.
Next month, I'm going to sell ATM strangles on stocks the day prior to their earnings release. It might be too late to take the opposite position,...
I'm going to say I was an idiot. But, at least I managed to save it. I realized that my long term outlook on the stock was bullish, but long-term...
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