SLV Straddled Here

Discussion in 'Options' started by shortie, May 4, 2011.

  1. If you have to inquire about the price you can't afford it.
    If you have to ask what to do, you can't afford to trade it.
     
    #71     May 11, 2011
  2. not clear what you are saying
     
    #72     May 11, 2011
  3. Whatever, man... Can we pls confine ourselves to a discussion of options here on this forum and leave the crazy stuff for the other places?
     
    #73     May 12, 2011
  4. #74     May 12, 2011
  5. my position took another major hit this morning as SLV dropped yet another 5%. -136, may have gotten a bit worse later before recovering some.

    [​IMG]

    Unrealized PL in the last several days: -5 > -70 > -54 > +23 > +45 >-52 > -136
     
    #75     May 12, 2011
  6. spindr0

    spindr0

    FWIW, had you been adjusting the position with each reversal (rolling profitable legs), you'd have a decent profit in a mere few days. Gamma scalping would have been ideal.
     
    #76     May 12, 2011
  7. newwurldmn

    newwurldmn

    He's right, if you had traded the legs around you would have done better, but that's not gamma scalping. It's texas hedging. When the SLV was at it's local high you would be buying back your short put (effectively selling delta, when you are already synthetically short delta and short gamma).
     
    #77     May 12, 2011
  8. let me see if got this one right: i look at the Short option that does not have much juice left (made me money) cover it and Short the same kind (call or put) but closer to the price SLV is trading at that moment to get more credit.
     
    #78     May 12, 2011
  9. spindr0

    spindr0

    I didn't mean to imply that they were one and the same. What I meant that adjusting the legs would have worked well. As a separate strategy, gamma scalping would also have worked well (for example, buy a long leg and scalp the UL against it, etc.).
     
    #79     May 12, 2011
  10. newwurldmn

    newwurldmn

    Ah...

    Being long gamma would have been a good trade; better than the butterfly. but I think he was looking to sell gamma via his butterfly.
     
    #80     May 12, 2011