While I'm following your explanation here, it brings up a question. Why do people then recommend long calendars into earnings? I believe I saw a...
I think I'm following you now. You'd want the higher strike to be ATM, which is why we use a 2-3-1 configuration for put flies. Is that correct?...
I was thinking that you would still put the body strike at 159, only structure it as a 1-3-2 fly. When you are buying 2x the further OTM strike...
Why the 2-3-1 put fly and not the 1-3-2? If you're just targeting to profit from vol skew wouldn't it make more sense to long weight the cheaper...
The position is slightly positive on deltas though. The play is neutral to slightly positive and short vol.
Why can't you read the previous posts? He posts the net positions almost everyday. I've been following the trades on ToS trying to learn. You...
What is the reasoning behind negative delta/vega going into tomorrow?
Being new around here I have to say I hope all threads are as educational and entertaining as this one. But I have to ask, is this vanzandt guy...
Theoretically yes, but logistically it could be a hassle if you don't have the buying power, depending on the brokerage. OP is new so just letting...
This is a vertical bull put spread, but selling a ITM strike means you are taking on some early exercise risk.
Got it, very helpful. You're hoping that IV is underpriced and will go up, and still get to collect the theta premium while you wait.
Got it, thanks for explaining. I'm fairly new to this so maybe I didn't use the correct terminology. What I meant by directional was that you're...
The movement of the underlying will affect the calendar price a lot more than the IV changes though. This is almost as much of a directional bet...
How often are you delta-hedging? Are you using any particular methodology?
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