Are you saying you prefer shorting the put on down days (as opposed to up days) for the expected increase in vol, or because it's another way to BTFD?
The effect of the initial fly will remain throughout the life of the position, whether you erase individual contracts with adjustments or not....
What Martin says. But you're probably worrying too much, unless you're completely UR and risking ruin every day. Cheap wingstrikes. If things...
What about shorting some calls in some ratio above your current strike? You address your vega concern, although I'm not convinced that's your...
In the context of this thread and depending on your needs, yes. For instance, you can buy (not sell) the tails, scalp those units when the market...
:wtf:
Try thinking about a diagonal in an alternative manner: to enhance, not hedge, your reason for adding the trade. For example, if the underlying...
While not incorrect, I don't think it's as helpful for most traders to think about the value-add of vega and delta in the way you're proposing...
I guess you could think of this concept as applying to a multi-month time spread, but I don't typically do that because they're more complex...
I'm not sure I understand the above, but with the diagonal, I think you're asking whether you can hedge delta with vega, at least to some extent,...
Can you tell us more as to why you've focused on a time spread seemingly to express a delta opinion? You should be able to execute your opinion...
Don't confuse changes in VIX with what will happen to the vol-relevant aspect of an option. They have some relationship, but only indirectly. Of...
The models are not perfect because they're not clairvoyant. They are simply the best approximation available. If you're trying to price a...
You've got a couple of concepts conflated here, but here's something for your question about relative pricing on puts/bullish risk-reversals....
At first blush, it looks like you've got a substantial amount of decay that will cause some headaches in the absence of a strong move in one...
I still don't understand. The actual IV is known at any instant if your bid is lifted. It might not turn out to be the realized IV, but it most...
What's the meaning of "an accuracy of better than 50%?"
If your strategy results in a "great setup," by which I assume you mean a high likelihood of a directional move you've predicted, then why not use...
Agreed. The premise of the thread is so completely idiotic that it has to be a ruse.
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