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Messy day today. Poor trading on my part. Lots of slippage. Hedges: While disappointing, the trade is still alive and I believe has a reasonable chance to be profitable. But it will be quite a bit of work tomorrow to clean this thing up going into Friday.

Note that the prices of the original position are slightly different. This is one I did in a different account, so the fills were at different prices. Executed around the same time last Friday though.

I had hoped to update this in real time, but unfortunately due to more pressing matters I could not. Either way, here is a screenshot of the updated position along with all of the hedging thus far. I'm pleased with the performance, particularly given difficult trading conditions at times...

Sell at the money calls and buy more OTM such that you're delta and vega neutral. As the stock moves around, buy or sell options in order to remain neutral atm, but long a lot of gamma in the right tail. You won't make or lose much if the stock sits still but if it pops up you'll quickly get...

If you think it's going to be a hard, fast move up why not put on a call backspread and leave yourself open to capture bigger upside?

"Odds based on the past 3 years favor a continuation of the uptrend currently." How are you defining the odds?

Good to see you emphasize tail-hedging. However, you say that you "embrace" volatility. How do these spreads benefit from increased vol?

Cool. Thanks. Yeah that looks much better. Keep in mind though that the structure will evolve throughout the week as new options are bought and sold to hedge, the goal being to whittle down the max loss regions, leaving a high probability setup for a close within the profitable area on...

Thanks. Looks like something is up with the delta figure though. Also, the model is misleading. Even if NFLX opened at 341 on Monday there's no way the spread would mark at that big of loss. Also, the projections of the center rising that quickly are not accurate either. If it were to just...

Greetings Fellow Traders, Kind of a slow, boring day for me and I'm playing around with scenario analysis on a spread I put on yesterday at the market close. The structure is essentially two combined backspreads (one in each direction). The wings are 1 SD out either way and the ratios are...