Wheel strategy un hedged

Discussion in 'Trading' started by wxytrader, Dec 25, 2023.

  1. ironchef

    ironchef

    Because I am directional and don't hedge.
     
    #31     Dec 26, 2023
    taowave likes this.
  2. taowave

    taowave

    Lol!!!!

    Do you trade shtock or options for direction??

     
    #32     Dec 26, 2023
  3. What do you mean? All of it.

    IWM
    Clipboard14.jpg
     
    Last edited: Dec 26, 2023
    #33     Dec 26, 2023
  4. taowave

    taowave

    Lol!!!!!!

    Can I get some help here???



     
    #34     Dec 26, 2023
  5. What are you asking? LOL. I get the premium...who cares about spot price?

    https://seekingalpha.com/article/4629850-tsly-etf-best-move-to-avoid

    See TSLY is doing the exact same thing but with a synthetic long. I am doing it with actual shares. I basically figured out from my basement what it probably took a room full of finance grads to figure out. Right down to the weekly adjustment. I could have told them that...go for the IV premium near expiry.
     
    Last edited: Dec 26, 2023
    #35     Dec 26, 2023
  6. What do you call dividends then? This is the same thing...oh wait are MM taking back premium now? lol
     
    #36     Dec 26, 2023
  7. Nope, you’re on your own!
     
    #37     Dec 26, 2023
    taowave, nbbo and newwurldmn like this.
  8. In a wheel, are long the stock and short the call (ie short a synthetic put) or flat the stock and short a put. So you are always losing money when the underlying is going down and don’t make any money (beyond the premium) when underlying is moving up. Feels a little like a missionary position, doesn’t it?
     
    #38     Dec 26, 2023
  9. ironchef

    ironchef

    Options
     
    #39     Dec 26, 2023
  10. taowave

    taowave

    Dude is relentless


     
    #40     Dec 26, 2023