Great old threads about Gamma scalping

Discussion in 'Options' started by IV_Trader, May 8, 2006.

  1. True, and you're leaving yourself horrifically-short net gammas.
     
    #71     May 10, 2006
  2. Riskarb > King of short dispertion
    IV_Trader > a Mini Me
     
    #72     May 10, 2006
  3.  
    #73     May 10, 2006
  4. Re-straddling is something I looked at in backtesting but got worse PnL for the period I tested with...but probably need to go through again with more accurate numbers.

     
    #74     May 10, 2006
  5. if stock with IV of 15 moves form 60 to 65 , what are you holding...practically a stock. By exiting and re-straddeling again( cheap , less days left at this point) how can you lose ? If stock keeps going up u are ok and if stock reverse , you are a big winner (vs holding the original 60 straddle). I'm not sure if pros doing it the same way , but it's always worked for me (in the long dispersion)
     
    #75     May 10, 2006
  6. hahaha. I've seen IV, he's like 6'6" =)
     
    #76     May 10, 2006
  7. I wish I would of enter this position on the day of the post...wow
     
    #77     May 17, 2006
  8.  
    #78     May 17, 2006
  9. tman

    tman

    IV, I really like your method of comparing h to l vol vs. close to close vol for finding possible gamma scalp candidates. Have you done any screening based on that ratio?? How have your results been?? I think I may give that a try for June expiration. I will share my findings if there is any interest...........tman
     
    #79     May 17, 2006
  10. hahaha ... I got my connections ; the advise also came with free latte , lol
     
    #80     May 17, 2006
    speedy168 likes this.