Search results

Thanks for the clarification and sharing your ideas.

SweetBobby, I have a question. So, then per every 0.6 shorted, there will be an immediate 1 longed? Or the ratio is achieved over time? If hypothetically market goes up and there is an opportunity to buy back in the shorted month for $1.35, then the short to long ratio changes (we have more...

A slow market decline that does not wake up the IV, is a serious concern for your strategy. Whether it will ever happen or not is another story.

Fairly speaking, Dest has a valid point. The structure designed by Sweet Bobby, requires layers on layers of positions, and if dissected properly, it might contain many redundant positions that are pretty much counter balancing each other and not helping the net portfolio profile. 0.10$ slippage...

So, he does bleed theta (as anticipated by the model)on those near expiry long puts, yet the IV steepening (elevation of IV on the OTM puts) partially helps him?

Thanks for openly sharing. I myself am a beginner, that's why I did not directly comment on your strategy. I wanted people with more experience to break down your approach and verify that your logic flows. Thanks for sharing man. Anyway , you are the reason this productive thread started and we...

Thanks for your thorough explanation. For the call ratios that you described, is it also good to partially delta hedge them with futures?

VolSkewTrader, when putting the call ratio , is it more critical to initiate it at extremely low IV regime, or it is more critical to initiate it in anticipation of price rise? If you could only know 1 dimension (either vol or price-rise), which one would you say matter the most for the call...

I am confused about something. How can those puts Sweet Bobby posted, gain gamma in April and May? Isn't it that market is getting further and further away from his put strikes? Therefore, his gamma is constantly shrinking as market grinds up; so can we confidently say his overall IV losses were...

Hi VolSkewTrader, could you please elaborate on ... "In April, even though your long front month IVs crashed relative to your short back month IVs, your overall position benefitted from a massive rally, and your front month gamma saved you from the term structure IV collapse" 1-Is he not...

Hi Dest, following along the idea of carrying through the news: Hypothetical position: "PLAY", expiring June 19th. I thought of 12/13/27/28, where shares are at 19.80, Earnings will be reported on June 11th afterhours. IV is at 220%, but was historically much lower. Placing the Condor on June...

Hi Dest, I have some questions regarding the "unimodality of verticals, diagonals, and singles" that you mentioned above. 1-Based on your experience, is it worth it to explore the historical return distribution of the underlying to improve the decision quality on options bets? Or options are...

Thanks dest. I would need some time to digest the info you shared and then get back. Thanks for the suggestions.

sorry dest, the language is too advanced for me man. Please excuse my primitive question. To avoid the risk of deltas inverting you suggest, 1-we widen the body of the delta neutral fly (ITM-ATM-OTM)? 2- or you mean we should start with directional fly (ATM-OTM-more OTM)?

lol. I guessed that it should not be that easy. Any general guidelines or I am hopeless?

Hi dest. On the AAPL butterfly trade, you mentioned a possible tendency of the price to stick to VWAP, which actually materialized. Could you elaborate on the VWAP anchoring please? I mean how many days to include in VWAP calculation, and whether to avoid overnight volume or not. I think even a...

Thanks for sharing your insights Dest. We have learnt alot from you.

Hi Dest, I was wondering if there is any hedge in place, in case market keeps grinding higher? Are these "Short ES, short AAPL deltas" a part of a larger portfolio, which is overall delta neutral?

I think he means to short the straddle. Short put and call both 2940 strike. Just a guess, because what's the point of shorting ATM put and buying ATM call, if he can long the futures instead. Sorry for not being that helpful

Brother I like your non conventional way of thinking. But I have my doubts. It cannot be that we benefit from the brokers interference both on a momentum and mean-reversion style. Maybe the concept of averaging down is somehow Ok on equities because of the natural updrift. But I am sure on sth...