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They say the devil is in the details, and I still don't understand how you profit on these. In your daily wick zone 4 video you show a trade that goes up 10 pips. But what about when price comes down in to the box and then pops back out (the wicks on the following candles). Those were biased...

Either that or you are part of the option fixing syndicate and you were trying to change the subject? :cool:

I don't trade those but earnings are coming up and vol is higher

if you are thinking that it will head down why not scalp a backspread instead? I never had much luck scalping indices, although I always heard a good rule of thumb is to scalp your position when your delta equals your gamma.

Couldn't this just be a hedge to a long portfolio to protect from an overextended market?

Also utilized, ATM ratio calendars (gamma neutral) are cool for hedging vol on spesific maturities, almost like a VIX contract, little gamma/theta change w/ UL change...and of course VIX which I use a lot, I have VIX tick-data back to 2004 and the profit-curve from selling front-month VIX if...

Just curious, when you say selling downside spreads, are you referring to otm put verticals? I am trying to figure out what you mean by rolling it up to the call side. Thanks!

I was responding to the comment above me discussing using an otm fly if vol was low since it started with a slightly vega positive. What I was trying to say is that you lose the vega when you need it most, as price is dropping.

I generally find you lose that positive vega on an otm put fly as price drops towards the center and vol pumps up.

If you are using deep in the money calls, for some reason TOS has a hard time with their delta and p&l in their calculations. I have seen a lot of people with a similar position run it through optionvue and rely on their greeks/p&l

Not sure if this applies but if your position is a fly with a deep in the money call, the TOS platform for some reason doesn't track your greeks properly. A lot of people use Optionvue to model their trades instead. Not sure why TOS has a hard time with deep in the money options.

Got it thanks!

Not sure if you were answering my question but what I am asking is if you just had a big move wouldn't you want to be short the gamma and atm assuming that the move is over?

I am trying to follow you, if you just had a huge move with vols pumping up why would you want to be long the ATM gamma?

The irony is that the answer to your question of debit vs. credit is the put call parity.

To add to this, you should also really understand the greeks especially trading the strangles. Today should give you a good idea on those strangles you sold of what a pop in volatility will do to the positions.

One more thing she mentioned: "last year sell two puts longer out for every one call". That to me is trading directionally (positive delta, negative vega) in a one way market. I think there is more behind what she is doing than just selling strangles. Speaks to what a lot of smart option...

When you pull up the margin on TOS and click explain margin it shows the 10% down number (how much you would be down) and the 6% up number as calculation. Keep in mind that the numbers are based on current assumptions so if vol jumps the calculation changes and the margin goes up. Which...

TOS isn't what it used to be but I have found it one of the better option platforms to use. I think you can open a paper account and use most of their features without putting in money (that might have changed when they became part of TD ameritrade). I don't know if you can model portfolio...

Never done attachment