It's really a function of the stock price. It's not sticky like it would be at $51/share at 10x the float. Largest mcap and it trades like a microcap.
AAPL is on tilt. Long the AAPL Jan 440/540/640 fly at 48.00 risk (47.60 mid). 15 units. wtf. I am holding this to 55 or SL if 40 prints (on fly debit). The gamma is too high to trade the short durations and vola will drop as we rally. I think we will touch 540 next week. Edit, upped it to 20 units. Average is now 47.90 risk.
At what point does gamma risk really become an intolerant issue trading fly's... talking in terms of placement in the term structure.. front month...? Of course weekly but... just wanna hear you guys opinions
goog trade was a disaster. bby trade was going well until today. i had gotten long some delta and was hoping for a quiet expiry to cut into. DAMN YOU Citigroup equity research!
When spot trades outside the wings, but then you're long. It's not a simple question and there are infinite answers. I'll ask your mom.