Are you selling puts and calls at the same strike? How are you trading with this strategy if you don't mind me asking? Especially in a market like this I would imagine the put side weighs heavier no? don't you have to buy back calls at the end of the day at the ask?
So you are buying options? And by edge you mean that the realized volatility is greater than the implied during covit times? Geniune Question.
Buy 1 sell 3 Edge=Realized vol on the upside will be less than the implied.. I was supposedly short gamma....IMHO,it was an exceedingly low risk trade.. I was playing for the dead cat bounce,needed a 100 point rally and got lucky
Edge is theoretical, you numnut,hence called theoretical edge.... And its what the bet is predicated on...
@.sigma, read this. Essentially, BMY-RT is a binary option, paying $0 or $9 with March 2021 expiration: https://www.elitetrader.com/et/threads/bmy-rt.338230/page-2#post-5055011 My payback to @TheBigShort on his CELG thread. Regards,