I just bought another few diagonals... Put may31/jun7, -33$put/+34put for 1.70$... Red herring or that once in while wack I am never sure!
I had a silimar trade on to make 5 or lose 8. I just close for a profit of 1. Problem is the return distribution isn’t Gaussian. It’s uniform.
Interesting thanks. Does that mean that I should not expect that the long should hold much more premium than the diagonal cost, by the short exp?
I mean that the stock can be anywhere. I made a $1 on my position (spot 32), but if i held it further into this selloff (spot 30) i would be negative on the trade due to spot vol correlation. The Spot vol corr is super strong, but the realized vol makes it hard to trade. Stock could just as easily be 20, 30, or 40 by the close.
I understand, thanks. Return distribution of the stock. I was trying to imagine something to do with IV on the term structure. In fact, right now the position is losing about 50c, I can hold, I just hope it doesn't flip all the way into credit.
Ummm.Maxi lad,for your continued self development,your posts come across as both negative and hostile. 'Be the change' you would like to see on ET.
16 May 2024 - day 10 volume has weakened significantly. market opened with down gap ie downtrend continuation BUYERS << SELLERS Those who bought GME after the awakening of Roaring Kitty must be weeping and gashing their teeth in despair. END OF STORY. Next ROAR please.