With BXM futures, most of those real-world factors go to nil for comparison's sake with presumably the additional benefit of futures margining. Talk about the lazy man's covered CALL! Die thread die!
If you are short otm options and the market moves towards the strike should you delta hedge at the strike or completely hedge as you did not delta hedge when the position was instigated?
In many different threads and places its been noted that hedges do not work AFTER the fact. WHEN you sell an OTM put or call...THATs when you put the hedge on. Otherwise accept that the risk you take is the full loss you accept.
It really depends upon what type of trader you are,and just how quantitative your approach is. Let me first ask you this.. When you sell option premium,are you doing it as a directional bet,or are you trying to capture the differential between the implied vol you sold vs your forcasted realised vol(historical)...??
I see. By any chance... did your daddy ever ...throw you up high in the air three times ....but... caught you only twice... when you was a child ?
It is a real shame that an, at times very interesting thread like this can't, after running for a year and a half, get a good rest and a frustrated kid like this comes by to wake it up. A sad ending. The next revolution in internet will be the idiot-filter. Ursa..
I absolutely and unequivocally agree with you...that one .... must know... what they are doing ... in the financial... Hey! What's going on?!... My keyboard is shrinking!!!... where is my... numerical ... keypad... it's gone...!... and now .... my function .... keypad... is gone too... and my 'f' key... what the phuck? ... hey what is going .... on here... ? ... my whole keyboard is shrinking... and all... I'm lepht with... is the period key.............................................................................................................................................................................................................