Registered: Nov 2005
09-28-11 08:08 PM
The sum total of the deltas will be greater than 1.00
Quote from falcon:
The deltas on both sides would be close enough to 1 to make some money on small moves frequently, there is no timming of the market for the day trading portion.
I will be taking profits on both sides when the market provides by rolling up and down and taking in more credit always having both sides at any given time, this way I will know my credit if it stays within its range at expiration.
If it blows out to the downside Im not adverse to owing the stock and I open long positions to protect my upside.
Since both are ITM, that means that a move to either strike will lose money, assuming no passage of time (decay) or advantageous benefit from change in IV. Outside of either strike, it gets worse.
Successful timing is the only way that you'll make money with this unless the UL is within the confines of average of strikes +/- the net premium received. All the adjustments in the world will not help you unless the UL cooperates.