Best way to reduce theta burn???

Discussion in 'Options' started by short&naked, Jun 14, 2009.

  1. The closer the strikes the closer the replication, of course. I covered the vol-risk a little in the above-post.

    Generally, if you're correct on price you'll exceed your modeled-delta gains due to smile.
     
    #21     Jun 21, 2009
  2. Ah. I was wondering because i did this on the Pound a few weeks ago 165c's vs. 162p's and did a bit better than I thought I should have. Now at least I know why, lol.

    One more question while I've got you: I'm long the 167-170 July ratio 1-2. You'd fly this asap, eh?

     
    #22     Jun 21, 2009
  3. Yeah, I never backspread w/o wings.
     
    #23     Jun 21, 2009
  4. I keep telling myself I'd LOVE to be short at around 171 and at least if they ramp I'll have some extra bullets banked as opposed to starting short from scratch. But if anything bro, on a breakout to new swing highs I'm going to get longer somehow. I have so many questions I could ask you about combining calendars and some funky ratio type stuff, etc.

    When Boston was taking an inordinate amount of time following up their huge debut album, Tom Sholtz said to the effect, "I'm not Jimmy Page. It's not like I can just crank out quality stuff." You're Page....
     
    #24     Jun 21, 2009