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If you are long the straddle as the price of bit coin moves up and down your delta on the position changes. As it goes up you sell bit coin to balance the delta and then buy it back in as it comes down. Same on the other side but flipped. Ideally you are making money on the gamma scalps...

Thanks for the reply. Interesting stuff. I don't day trade myself I play more positional moves in options over a weekly period. But I'm always intrigued by the different systems and rules day traders come up with.

Curious what are your theories on why you are now looking to average being pretty profitable compared to the DEC / JAN. What were your key adjustments in strategy and risk management?

Looks like you will be called away as planned. Presuming we are above 385 come close. Do you sell your next put while you still have the short call on? Or will you wait till Monday?

I don't know much about it. Gave it a look volume looks pretty light. Suppose you could buy the straddle and gamma scalp it.

My familiarity with delta hedging is to use it to keep option positions flat by going long or short the underlying when they get out of line. Without an options market for bitcoin I'm not sure how you would delta hedge.

It can apply to many different option positions so kind of need to know what your thinking. Lot's of gamma scalping which is delta hedging with straddles and strangles. Throw out a strategy and can give you some ideas of how it works.

Agreed. Was referring to the conspiracy theories on other threads.

Interesting but I don't see conspiracy. The higher the volatility the wider the bid ask spread. As a guy who spent some years with a market making firm in commodity options the busiest days in terms of lock limit up lock limit down were often the most profitable days because the bid ask spread...

Can't say i do. i don't trade them as much now. just keep a few going. i'm trading mostly weekly butterflies at this point.

I don't know if I'd blame the market makers. They aren't the evil empire. Someone needs to take the other side of a retail trade and they are obligated to always buy and sell. The earn the spread and whatever they make gamma scalping their positions. I don't know about massive conspiracy...

Happy to make a market on over the counter lumber options? My markets might be a little wide.

I want enough money to invest and seed a good number of start-ups that operate on an employee co-cop model with democratic management. Make my money back on reasonable interest and a residual of sales. Give generously to some charities. As far as luxuries not really interested. It all has a...

Week 4 Update Added following flies this morning all expiration 2/5/21 APPL 1:2:1 call 135-140-145 @ $1.17 PTON 1:2:1 call 145-160-172.5 @ $2.35 NIO 1:3:2 call 56-60-62 @ $0.80 RIOT 1:3:2 call 22-25-26.5 @ $0.60 EBAY 1:3:2 put 60-57-55.5 @ $0.66 All tied to short guts at strike with highest OI

Finished up this book last night. Good chapters about gamma and reverse gamma scalping. Kind of makes the argument that explains why pinning can happed based on market makers gamma scalping around strikes in which they carry large positions going into expiration. Author writes in a clear...

I've used the wheel. I like entering with a ratio spread as you get a larger pop when assigned. No real strict rules I follow. I use weekly options when available. I like doing these on stocks under $10.

Sheldon Natenberg - Option Pricing and Volatility Euan Sinclair - Option Trading - Pricing and Volatility and Strategies and Techniques Euan Sinclair - Positional Option Trading Dan Passerelli - The Market Taker's Edge Brian Johnson - Option Strategy Hedging and Risk Management Anthony Saliba...

Update Sold Calendar in Snap @ $1.14 on open today. Up =$0.20 Entered IWM 2/5/21 1:3:2 put fly 212:205:203 @ $0.86 putting on before a number of call flies tomorrow.

Week 4 - Update Bought the SNAP 54 calendar put spread sold the 4DTE bought the 18DTE debit @ $0.94 Rationale: 184% vol in the front and 110% on the back. Playing contraction and earnings Thursday after the close. SNAP has a nice record of earnings underperforming. Hoping to either exit on...

nice rally for you.