Theta capture on weeklies for daytrade

What strategy works best to capture the theta at the open and end of the day for daytrade? I can't think of anything other than selling naked. Thanks!

 

Your selling gamma collecting thetas... Just a note... Gamma exponentializes near expiration... Convexity to a high degree going against you...I did this kind of thing started out.. I quite before it really hurt me...

 

I'm looking at DOTM current week weeklies and the gamma should be small in the 0.0x range.

 

... until something unexpected happens and you're wiped out. The probability is > 0

 

I don't think you get what i'm saying.. Yes the gamma is very small on a DOTM weekly.. but the change in gamma is rabid.. It literally becomes unmanageable..

http://investorplace.com/2012/05/options-gamma-risk-visualized/#.VczFBPlVhHw

 

Look at July's OpEx as an example of what can happen...The Nasdaq rallied almost 7% from the Thursday lows the week prior to OpEx...I'm sure the far OTM calls were selling for peanuts...

 

this is a pure example of gamma explosion.. it's actually the risk best to be long not short..

 

yeah completely agree.

 

Maybe he could do a backspread, (not that I trade those very often)...would have worked well in July, but that "pin risk" on those very short term options would scare me off...still better than the naked DOTM options strategy.

 

Selling pennies, buying dollars. Not such a good idea.