what is the purpose of delta hedging?

To avoid gamma extinction while capturing as much juicy Theta as you can take down while throwing a vol crunch party

 

Delta hedging allows one to work through and derive the pricing models for options

 

I gravitate with flies to the other side. I usually only trade them with one day to go. Most of the profits come when the fly opens or goes full carry which with high IV stocks doesn't really happen till the end. I need to start looking into doing some longer term ones with lower profit targets as well but they seem to move pretty slow until they get close to expiration.

 

An account since 2005, 1800 posts and then this kind of question? Did you spend the past 15 years in an opium den in Bangkok and let your chimp type away on ET?

 

What? Lol. This is pure entertainment

 

to try and stay neutral while selling option premium to fools who have shallow pockets and hope.

 

Brown lives in a $250K hovel. His 20YO avatar pic is seen throughout Dunning Kruger's latest edition.

BTW, what is the barrier to entry on these vol-threads? Because clearly it's as porous as Trump's asshole fence.

 

Browns busy arbitraging Fararees.

 

TOS = think or swim

 

yep I need to do this. I learned about Delta and Theta, this is it.