C'mon, man. He was not neutral theta. He was carrying $300/day before the cover of the 5/1 condor. He thinks that he's not losing to theta if the position gains when short theta.
I normally try and stay away from pointless arguments on the net with strangers I'm never going to meet regarding things which aren't that important......but boy-oh-boy, am I enjoying the humiliation that @destriero is suffering here. As childish as this is, once in a while, such things are necessary as a stress-relief mechanism. Kudos to @Sweet Bobby
For what, dumbass? Did he follow your "double calendar" strategy before blowing up and running from a wager? Then yeah, I'll take that ass kicking every time.
Theta and delta neutral have to be constantly adjusted. If he had zero decay for that day, he effectively had theta neutral? If so he could constantly adjust going forward to keep zero decay? I am posting them as questions instead of statements because I don't know.
He's short theta. He's long gamma. You don't "have to" constantly adjust and you're giving up edge on your hedge. He cannot adjust DOTM diagonals locally. He's short something like 250-300 theta and getting his ass kicked. What makes you believe you must maintain neutrality? Dude, read a book or something. You gamma-trade (long gamma) to realize gains from stat-vol. He's not hedging short vol.
I can’t believe this is still going on. But while I may understand the main characters have overgrown egos and just can’t give up, I don’t know what the audience is expecting to get out of it. Guys, get real and stop wasting your time; you are not going to learn to trade options from dest or bobby. Won’t comment on their skill level, I’ll only say they are not here to teach you, they don’t have even the slightest intention. And nobody has on this forum. Anyway thank you Bobby for starting this thread. Great and unexpected outcome for me. Your mention about Ron Bertino made me revisit some old links and videos and rediscovered a forgotten one: Theotrade. I’m not talking here about the free videos on youtube. For 100 a month you will get more well-organized material than you can handle. Subscribed now and hooked. Just wanted to give you free advice.
Is SPX the ideal underlying for this short ratio diagonal strategy? If the goal is to find that something that will move dramatically during a crash and rarely grind sideways, wouldn't something like UVXY be a good option? You would instead do this strategy with calls.