In the simulator; Rationale: triangle about to break out to 380-390 Long stock; due to negative delta at inception - should I gamma scalp? last point; my buddy is a pro at a bulge, told me not to cap upside on this trade.
I trade purely on updated technical analysis that answers the question: Is price rising or falling? And according to my diagnosis, SPY is currently at a decision point or level. So if it drops below 350, I'm bearish. However, if it climbs back above 351 and stays there, I'm bullish. But, at this point, I have to wait to see which direction it takes.
Fast move up is your friend..Sitting still,drifting lower is your enemy...You are calling for a 10% up move,short 100 diagnols(-2.5 delta) and long 437 shares againt it??? Thats not the play I would make if I was as bullish as you
The Greeks are in my favor but I’m certainly open to ideas. The payoff looks like selling a fly except I am selling vol. I also run the risk of getting assigned here. An up and out diagonal may be better.
You have to make an assumption on how the diaganol trades with a move... Start with what,as in what range, causes the pain on the diaganol
To anyone wondering; not great! when the spy comes back in to touch the triangle I will throw on an up and out and see where that goes.