tremendously helpful response, thanks! the part about the greeks makes sense, especially the delta.. and you're correct, we aren't trading skew...
risk-reward-PROBABILITY... the amount you're risking and the amount you stand to gain are irrelevant without being factored against the...
i see what you're saying, but what i'm getting at is that if you wanted to buy 100 shares of SPY today, then you're going to be better off selling...
you don't see an advantage in entering a stock at a lower price? sure, if you get assigned, you're paying more than you would if you bought the...
there's a variety of reasons skew leans one way or the other... it gets complicated fast... as to the collars, yes.. MMs do it, traders and...
skew increases as you go OTM.. also, the vol curve flattens the closer you get to expiry so its neutral at the time of expiry.. so the closer to...
i dropped a couple but they mighta got overlooked and tbc, the first quote is speaking about trading a bullish debit spread in a stock with...
the presumed reason selling puts on indexes works is because the volatility in indexes is skewed to the put side.. people are hedging index longs...
reading back thru what you added in the edit @Same Lazy Element i think what i'm doing is in the same vein you just suggested: using the skew to...
i'm not running straddles and my thesis is not wanting to run a fly.. i'm talking about running bull spreads in call skewed stocks then converting...
deep in the money
okay, just to make sure i'm understanding what you're putting down: what i'm doing is essentially chasing the same concept - setting up a...
word! i'm-a extrapolate on that tomorrow.. thanks for taking the time to discuss skew with me.. i learned a lot from some of your earlier posts,...
just trying to explain what i was doing, seemed like you thought i was running straddles lol i agree with you there, i tried my hand at legging...
that's generally my strat on diagonals.. i use the synthetic ratios more, but i like diags for how adding the time dimension helps negate...
okay, so i just realized there's a miscommunication... i'm running bull call spreads, not straddles... a 90/35 bull call spread... stock breaches...
if i'm understanding you correctly, yes... $10 call spread, cost $4.00, stock breaches short, roll down $2 to collect a credit likely around...
ouch thats painful.. i ate complete shit this past six weeks, i feel the pain, just nowhere near that position size.. eight figure vol trading...
thanks for the reply! ATM is definitely not a bad place to be esp if you're trading vol, why wouldn't you wanna capture that max extrinsic? i need...
technically since december, so about 5 1/2 months... i say we because i have a trading friend who's been exploring the field with me, helping me...
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