As long as you dont meet the" god of size",you can certainly take that approach. Obviuosly,you arent trading with price stops and are willing to take down the asset..
You're right, I misread. I agree delta-hedging will realize IVs above 0 within expiration. Also, as far as I understand now, IVs wont affect the delta hedging P/L at all, since vega is separate from gamma/delta...but then theres the higher order issues (vanna etc) which we talked about yesterday, but that was negligible I believe the conclusion was Now, if I could only figure out a way to measure how that damned vega affects my portfolio P/L...
If ur long gamma, then you're short theta If us short gamma, then you're long theta So... If your're long options, then ur long gamma/short theta. If you're short options, then ur short gamma/long theta. Always inverse. Unless, there is some crazy new fangled, multi legged trade that I'm unaware of. But, those two greeks are always inverse. The things I remember from class
Positively correlated when looking away from plus and minus signs As in higher (positive) theta equals higher (negative) gamma, and vice versa.