I understand the idea, but I have to look more into the implementation of gamma scalping, like neutralizing at 1 SD? I've done a search here, but...
Heh, that's true. There's no way to know or completely contain the risk of the back month option with the front ones. Okay, that's what I...
Thanks bebpasco. So he would buy the straddle and gamma scalp along the way, and exit prior to EA?
H John, Thanks for your reply. Yes, I tried to neutralize everything, but it just doesn't work. :) So looking at the strategy you...
LOL I looked at the P&L graph after I wrote the post and figured out potential problems with the position. Shouda done that first. Thanks.
Thanks much, spindr0. I am starting to get a feel for the basics, and which strategies might make sense in which environment. Okay, one...
With the strangle-straddle swap, it seems like it's always a trade-off between how much gamma protection you want vs time decay with the extra...
By ratio, do you mean buying more of the wings, or selling more of the guts? I had toyed around with pair trading for relative strength a long...
Perhaps I overstated my skills as a directional trader. For over 5 years I have lived off my earnings, but mainly from covered calls on a basket...
I am also trying out small calendar spreads on earnings play, just getting a feel for it. Pair Trading - Are you doing this with two stock...
Thanks John. I have read through many threads on ET and some of the articles people have attached, including examples of IC adjustment trades....
Thanks spindr0. I was mainly wondering if predicting what the market will do next is a factor in the way you adjust - when and how much. I guess...
I see what you're saying. When and how much protection to put on depends on your comfort zone and not necessarily on your outlook. I do feel...
If I can ask a question to IC traders, sort of a philosophical approach. I'm more of a directional trader, usually using TA and fundamentals to...
Thanks for the advice/warning, Mark. I have back tested earnings play (IV crush) and found that the long FOTM double calendar strangles (not the...
Thanks heech - I'll check them out. I didn't know ivolatility did that. I just have the basic to show the yearly IV chart for stocks.
heech, what service do you use to scan for stock IVs that are historically high or historically low? I know OptionVue can - I was just...
I'm thinking of stock indexes (Indices?) and stocks that I have been trading for a long time and feel comfortable with their movements. I'm also...
Thanks John. I'm still trying to find out what kind of adjustments I feel comfortable doing for some of these types of trades. And yes, I...
It looks like a reverse uneven slingshot position to me.
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