I wonder how many barriers were impacted by this. For the experts out there, how big of a market are the exotics?
However, I don't believe Bobby's numbers takes into account buying back positions and the $49k is just the gross premium sold. I could be wrong...
Bobby--I've mentioned it previously, but their study indicates capturing 25% of theta--not premium. So if your daily theta is 0.2%, the study...
Out -bought back the puts for 0.48 -bought back stock for $87.35
Entered into an earnings trade near the close on YUM. Hovering between $86-87 after hours. I should be fine if YUM opens in this range in the...
Para 89: This would suggest realized gains of $6 / 0.2 = $30 million Para 22 and 23: Para 9: So back-of-the-envelope math suggests losses...
Aren't these points one in the same? Agree the HDB fund's fee were based on NAV. Interestingly, the sole investor in HDB just transferred into...
I also don't think she's a fraud by definition. I think her investors are idiots to agree to compensation based on realized gains as opposed to...
What claims about her performance? Isn't that what we're trying to reconcile? Everyone is saying her fund blew up, but I don't think that's...
Because she was paid based on realized profits in excess of the HWM. The SEC claims she rolled unrealized losses, but the fund could still be...
I just read the SEC's claims. It's not clear if Karen's method was profitable or unprofitable during the tenure of her fund. In fact, it's very...
The segment references theta, not premium collected. So if your theta is 0.2% of net liq, their numbers suggest you should return 0.2% x 365 x...
Also, does the 25% retention from the Tastytrade research reference the premium or theta? 25% premium retention seems high if you're exiting at...
Great month, Bobby! At first glance, $49k in premium seems like a lot. I wonder if it would be useful to keep a daily log of your theta within...
No doubt this is something that I wrestle with myself. But rest assured, carrying negative delta does NOT eliminate crash risk. I like to think...
My rationale for carrying negative delta--after considering vega, being delta negative makes the position essentially flat. I'm also wondering if...
I don't agree with this. I wouldn't exit any short premium positions outright when volatility expands. Those are the opportunities that short...
I don't agree with the 2x stop rule. I think this is more for isolated positions. I just care about the net effect of the Greeks on my various...
Agreed, but even this is not too bad a scenario. This is why Bobby carries a 1:2 delta:vega ratio. I think you have to hedge to the extent of at...
A 50% drop is not the problem. In fact, it may even be welcome. 1% down moves for 50 days would be bliss. The problem is the velocity of the move...
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