When TSLA vol blows up,I find the Robin Hood boys and girls savagely overpay for the wings..I was in the 1/15. 950/1200. 1x3 call spread for a 2 dollar credit.. Thats the trade I was referring to when I said I was short upside skew...Its not a sexy trade,but it typically flips 4 bucks the other way..Margin can get gnarly,and closer to the money has more theoretical edge based on price distributions.. I mentioned the 12/24 Iron fly for a 67 dollar credit...520/610/700 calls..i got too cute and didn't hit the bid ,so now I am left holding herman while the IF is 62 bid ...You snooze you lose... FWIW, I find it very hard to lose money if you take in 70 percent or more of the "spread width" in condor type strategies...I learned that the hard way early on My weakness is trading Flys that are trading for over 50 percent of strike width,I.e 95-100-105 trading 2.5 or more..Perhaps I should look at them on a flat skew to see if there is "edge"... I don't get too carried away with microstructure
Is there a God? What is the right way to eat oysters? Could polar bears and grizzlies have babies? PS. I'll think of more things I am not sure of...
I'm always here for you, my child. Well, except for the posted lunch hours. And shopping. And there's the D&D game every other night, and Lucifer has this paladin who's just begging for some Old Testament-style divine retribution... Whole. Don't mind the crunch - the calcium is good for you! Of course! Polar bears with polar bears, grizzlies with grizzlies. Obvious, I'd have thought...