cable = USD/GBP exchange rate so it is option skew https://en.wikipedia.org/wiki/Cable_(foreign_exchange)
i'll be short gamma, obviously This said, there are so many ways to be short skew in a loss-limited manner (in my case, I bought an ITM DOP) and not worry about delta hedging it.
That would be the best case scenario, if it lands near the put strike at the end of the day. If it's an early, sharp drop there, I will look at the charts to try to determine what to do next. I took off most of the position anyway, but I want to see what happens with the rest tomorrow.
This spread is going to hurt now I think... ES at 1999 now and your vega isn't going to cover for the loss on short strangle. What did you pay for the spread? 30?
No problem for me on that position - I took off all but a token few contracts to see what would happen to it on Friday. The "problem" I have is my naked SPY 6/24 200P position!
hmm that might work out alright... depends on how low europe goes. If they stay around -6% you'll be okay I think... Good luck