No you don't. Frequency of hedging is a very tricky question - would you hedge your book "continually" if you are short gamma? if you are long gamma? long gamma in a trending market? However, experience of 15 years at a major investment bank and being a vol arb portfolio manager in a billion+ hedge fund does make me an expert. Now, I am not a equity options maven, but I have a guy sitting next to me who is an ex-MM in single name options and I just asked him: sle: ***, do you know what "Income Trades" are? ***: well, I can guess what it is but I've never heard it before. The point is that you (among other people) tend to mislead novices. My point was not to "know your greeks" but rather to "analyze your trades from the vol perspective".
Not sure what you consider as "cute". As long as you don't chicken out like your did with credit spreads, gap trading and long call, and have balls of steel, it'll work.
LMAO. I trade this everyday and I got my excel sheet here showing my "delta" real time and you are telling me what to do? I have a total experience of 16 years at not ONE single investment bank but also a very famous MM and a hedge fund, I have one guy sitting across me who is one of the most talented traders who has been interviewed by many newspapers and magazines and he has agreed with me. I mislead novice people? LOL. Anyone told you that you are hilarious? I think you are the one who is misleading people here. A real trader examines EVERY important variable from volatility to greeks. You sound like you are out for a pissing contest.
If he puts in enough time and effort, he will succeed with this long straddle strategy. Do I need to say more?
Because of his nuanced understanding of vol, gamma scalping, theta decay, etc? The guy barely knows the difference between a put and a call. The only responsible advice to him is forget trading straddles until he can trade the underlying profitably and has a clue about forecasting vol.
But of course I am The whole point of posting on this web site is self-entertainment. Entertainment is important to me, especially now that my market is half-dead (well, today is a notable and pleasant exception). I am still unclear why you would not buy a one month straddle. If you truly are a hero you claim to be, I'd love to hear your explanation.
lol ; +100 Hey Falcon - forget options and start trading vix switches... Shouldn't take you too long to "figure it out" J/K
No need to insult anyone. Neither you or anyone is born with this knowledge, we all learned as we went along. He might barely know his stuff but he can still learn and educate himself.
LOL Do fill us in. What is your market? Because straddles on the underlying which I chose work if I give it 60-80 days.