Long Vega and Long Theta

Discussion in 'Options' started by samer1, Feb 28, 2012.

  1. jkgraham

    jkgraham

    OK here's my attempt.
    To be long Theta you need to have an overall short strategy and you want the position to go down in price. Any increase in volatility will make the option's value increase. Therefore, I don't think it's possible to be long both Theta and Vega at the same time.
     
    #31     Feb 29, 2012
  2. jkgraham

    jkgraham

    Unless you do a calendar which the OP said was not allowed.
     
    #32     Feb 29, 2012
  3. newwurldmn

    newwurldmn

    It might be possible in some kind of skew position. For example if you are short call skew. But you aren't really long vol and you aren't really receiving theta.
     
    #33     Feb 29, 2012
  4. Here are quite a few long theta long vega trades:

    http://www.homeoptionstrading.com/_Media/home-options-trading-define-2.png

     
    #34     Dec 10, 2012
  5. #35     Dec 10, 2012
  6. ATM flies are long theta in most cases and neutral to short a few $ in vega. You're not going to get any closer (at inception) to +theta+vega.
     
    #36     Dec 10, 2012
  7. sle

    sle

    In the spooz, you can concoct a collar that would be long vega and long theta. Of course, it would not be long vega when you need it :)
     
    #37     Dec 10, 2012
  8. Sundog

    Sundog

    A Reverse Butterfly, as long as you start off outside any of the short strikes. Dont get get sucked into the hole. :eek:
    Maybe not what you are looking for.
     
    #38     Dec 11, 2012