Thanks for precision, I thought you meant by parabolic move that you were long biased. Long weekend premium should be priced in by end of Friday's trading-- notice the "should". Good luck to you.
For those that are interested in following if I make or lose money, here is approximatley where I will be hedging. Take the value of VIX, say it is 25 for the sake of argument. Say SPX is 1070. I need SPX to move at least 25 / Sqrt(252)) = 1.5% to break even to the downside, or ~16 handles. Since I am leaned to the downside, the actual % is closer to 1%, or about 11 handles. So at ES ~1053, I hedge my deltas by buying futures. If it goes higher, I have a harder time breaking even, but if it goes alot higher, I start to pick up deltas quickly.
SPX MMs generally have priced in the weekend by late Thursday (it's more complicated than this as they split time into two, voltime and banktime hence what they are decaying is vola time not bank time), so tomorrow, they will take out some fraction of Tuesday's premium, unless vola is bid on Friday morning. Thanks.
Has the rest of the world had enough? http://www.ft.com/cms/s/1e894c54-b4...showthread.php?threadid=178638&nclick_check=1
Yeah, I had a great day on figuring out that the max pain point was close for the rest of the world. Sold out of my GDX pre-market for a very high price, put a short in place during the day. Should work out nicely tomorrow closing that out. Central bankers are, sometimes, thankfully, almost pathetically predictable. (...and karma will bite me hard in the posterior, I'm sure, for this post. Oh well.)
Sold the 1040/1080 strangle around my long "straddle" to recover some theta. So I now have an "iron condor" like position on. This market is dead.
I don't deliberately sell volatility, but today I sort of fell into it. Every option position save one (I mostly sell) was in the green today.