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short where exposures are reduced in convexity = to me means.. your short the atm.. in a concave but contained way.. here convexity is a matter of perspective . convex to the buy.. concave to the seller.. or as you like to put it.. +/- convexity . and we are a seller of convexity "at the...

i hear what your saying... at the end of the day.. your either short or long volatility, and you have some net gamma exposure... no super positions.. no fucking magic.... i hear ya.. one day i'lll have to hit dinner with you and Donny Bright... its not a sound argument.. because i don't...

i wanna make money.. haha Market making today does seem like it would be exactly what you say.. intermarket arbitrage.. super fast, and done by computers.. everyone that makes money has a hidden box/software.. hardware set up/ colocation ... broker relations... etc.. etc.. that they won't...

it is a great resource.... and actually its makes great company to reading books and other resources... no question is a stupid question really :) except the ones you don't ask.. i'm the last one to talk.. i'll fucking interigate anyone who knows anything about derivatives for insight...

ladders are more of a discussion of how deep in the money or at the money to sell in relation to the ratio and spread of the bought options according to how sensitive you wanna be to the magnitude of a move.. thats just my imagination speculating what would make sense there.. never traded...

i can't even imagine "short guts" theres obviously a reason they call it that.. it falls under the same catagory as short strangles/straddles ... flys take the cake compared to these structures.. in the long run i hope to either make markets.. or trade a large book of some sort.. and i'm...

] so your making the assumption that there hasn't been three stimulus driven bear market rallys since the 08-09 crash?

instead of using the underlying stock to get your deltas i'm talking about using futures to get your deltas to neutralize selling premium.. or the reverse gamma scalping.. either way.. just depends on your volatility forecast.. so futures as a stock replacement to either hedge short premium...

this is the bottomline why i want to consider it... to avoid jump risk and margin calls.. . Tick Size: $.01 X 100 shares = $1.00 Trading Hours: 8:15am to 3pm CST (on business days) Last Trading Day: Third Friday of the expiration month Margin Requirement: Generally 20% of the cash value...

YOU BLEED WHEN YOUR SHORT PREMIUM.. your scalping when your long volatility/long premium

yes that is the simplest strategy... and obviously buying them right before expiration is counter intuitive but can be a good strategy.. sometimes people think buying back month options is a great idea but your just buying more time.. and if your paying a premium for it then your directional...

this is my real question.... i've learned of most options structures and their equivalents.. granted some are theoretically similar but yet still have different attributes... IE synthetic long, Synthetic straddles,etc.. etc.. So my real question is.. considering different account sizes...

ok i read the first two pages.. your comment about synthetics is on the third.. my bad.. either way... you must be talking about long short stock replacements with options.. IE longcall short put = long stock.. and vice versa... if your hedging alot of contracts this could make sense.. but...

judging by reading the way you started this thread... no offense.. but you need to read alot more about this subject before putting on any size trade.. paper trade or micro size the trade.. theres no such thing as Delta neutral.. thats an idea brought about by academia.. your delta is...

i swear the more i see people changing to getting long and a certain level of certainty .. i think the rally is over..

I get the increase in gamma risk in front month options.. requires a lot more frequency of adjustment etc... but "if you insist on trading options". You act like they are yesterday's news... I guess you don't fancy them.. why is that.....

yeah.. these are all things that pertain to getting your deltas from the outright underlying as well.. great insight guys!

Haha sarcastic bastard.... I'm sorry I forgot you know everything

Delta Hedging using Futures In practice, hedging is often carried out using a position in futures rather than one in the underlying cash asset. Mathematically, under the no-arbitrage argument, it can be shown that e(r¡d)t futures contracts have the same sensitivity to stock price movements...

don't assume the essense of it.. read it.. it will give you insight into taking on over write risks.. it compares.. different strategies.. against historical data.. buy/write..buy/hold....partially covered calls.. full covered .. naked... for ITM, OTM, and ATM .... its a worthy read.. really...