RWM ok to hold longer than a day?

Discussion in 'Trading' started by wxytrader, Dec 29, 2023.

  1. destriero

    destriero


    lol so you’re attempting to model the put post-event. What happens when the event causes spot to plummet? Explain it to the OCC and have them advance you the money. Today.

    youse make a compelling argument!

    why bother buying the put at all? Post event vols-collapse so just cover your primary short gamm and buy some flooring!

    Dude, what you propose in your modeling is r*tarded. You suck. Especially at this.
     
    #51     Jan 2, 2024
  2. Quanto

    Quanto

    The event is good for us, just watch the PnL chart.
    It is even much better if we were able to apply Step 2 of The Plan (but this is even just optional! Not even mandatory to do! :))

    Step 2 allows us to improve on the construct whenever it makes sense, and it does make sense when the OTM options become cheaper due to time-decay. One just tests it in the simulator to see whether the PnL chart would improve.
    By this method one also can increase the leverage x-fold...
    It's a powerful mechanism.
     
    Last edited: Jan 2, 2024
    #52     Jan 2, 2024
  3. Quanto

    Quanto

    What does "-1 ATM" mean?
    "StockPrice - $1", and similar for "+1 ATM" ?
     
    #53     Jan 2, 2024

  4. Sorry to drag you guys into the deep water here...:)
     
    #54     Jan 2, 2024
  5. If stock price is 200 you sell a put @ 199. If stock price is 200 you sell a call at 201.
     
    #55     Jan 2, 2024
  6. #56     Jan 2, 2024
  7. Well I don't know the whole history...
     
    #57     Jan 2, 2024
  8. Quanto

    Quanto

    Please don't feed this off-topic troll.
    You should be interested in keeping your own thread clean from such off-topic spam postings.
     
    #58     Jan 2, 2024

  9. No need for a Jokes thread on ET with you guys posting... :D
     
    #59     Jan 2, 2024
  10. Quanto

    Quanto

    You can simplify by simply taking ATM :) Would make no difference at all, IMO.
     
    #60     Jan 2, 2024