In order to prove something doesn't work, you have to first assume it does work. Bobby is assuming that the short premium strategy works which is...
I thought it was a great post. The ability to take the time and focus on one thing for more than five minutes is a lost trait these days. Thanks...
This is my general setup. I'm short the underlying and short the equivalent puts. I may be short additional puts but only on a cash secured...
You're right--my head is in straddle/strangle mode. But gamma will decrease once it breaches the strike. I'm not thinking about hedging at all....
I think that thread is mis-titled and is referring to the speed of gamma or d(gamma)/dS. In any event, it doesn't matter because gamma itself is...
I was just pointing out that gamma (acceleration) is decreasing--not increasing. I am certainly not arguing that delta (speed) is increasing.
Gamma is also at its highest when ATM. This makes sense given its relationship to theta. Therefore, ATM straddles would have higher theta/gamma...
Vol is only one consideration. Delta can make up for the difference. I was short vol yesterday but still was ahead for the day.
Most of my holdings (>95%) are essentially perpetual holdings. I've had BRK.A since the 5-digit days and have GOOG and GOOGL from the split. I...
That would be my worse case scenario as well. What happened to volatility during the melt-up? Did it go up? Today was one of those weird days...
Fair enough. I don't disagree. >95% of my portfolio are straight long-term longs while the rest is my options play money. I'll likely increase...
Out of curiosity, is your entire portfolio cash secured with zero leverage?
Do the math then. 1.084^n = 1.091^n x (1 - t), where t is the tax rate and n is time. At what value of n is the RS > LS? EDIT: I guess Bobby's...
^ Because returns on the Nasdaq are tax free? LOL.
A wipeout number is meaningless. Let's say the number is 40%. What are you supposed to do with this number? Stressing as Bobby is doing with...
Opened this trade on September 1 with IV at around 37%. After three weeks of fermentation and IV slightly lower at 35%, I bought these back at...
I should note I was selective with my words, "I'm going to adjust my position...". I was actually a net buyer in the afternoon. I just delayed...
Not the greatest but still managed to scratch out a small winner with the vol crush. I'll take it considering I was carrying negative deltas all...
I think the first 10 minutes is going to be a head fake. I'm going to adjust my position assuming a reversal after that.
I don't necessarily agree with this. On my TSLA short straddle, for the first week I was wrong on underlying direction and vol but still was a...
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