lol , dom , I never said that you just selling premium. I know that you know what you are doing. Your performance ( 5-10 % a month) speaks fot itself. :)
In the last few weeks I was looking into long calendar on Index that OP mentioned here.
Sell 10 30d DITM put (4-6% away from current...
Sorry , forgot to mention its ratioed , simple DN. Short 100 shares + long 2 calls (if delta is 0.5 ).
In this case I am paying just difference in rates. Cheaper when comparing to long straddles/strangles or long stock + long puts combo.
I know , I know , nobody buying premium here...but just in case : best way to enter delta neutral ( when using PM) is to short the stock and long calls.
I am using Generic combo limit order to enter position ; zero slippage
Nitro , in this case position still loses around 150k .
For one that trades future vols increase on daily bases , I'm very interested to see how others traders can solve this equation without rate of speed ( info , which OP choose to ignore when I asked him).
if you believe that decision will be delay ,then time fly is much safer trade than ratioed calendar :
sell 1 May
buy 2 June
sell 1 Jan08
Its a b/e even in case that they WILL go with May
Hey , Don. Yes , volatility , if IV brakes pre-report levels . This will happen often because all speculators ( that bought yesterday) are trying to dump vols at the open at any cost. If you can get it at the bottom , you will have :
1. Possible bounce in IV
2. Seven hours of unusual high...
I'm not sure if I understand clearly what you are saying ( looks like few diff strategies got mixed up here in my , atty's and your posts). Buying TARGET vols at some point after the open can be ( and very often IS) a huge winner.