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I think it is something you can do. At expiration if you're outside the wings the delta goes to zero so if the fly blows out to either side your hedge should offset losses but your delta would also be constantly changing as expiration approaches so you would have to keep hedging in a way that...

you're right i shouldn't do math after 10 pm

correction the hedge would correspond to the delta. so it wouldn't be one for one. my mistake. but still a trade this volume is going to trigger selling.

so a roll but not a naked roll. Good insights on the index with puts.

Somebody or somebodies also bought 4,000 of the 130 puts today. Trying to find the time and sales but if market makers sold those they have to sell stock to hedge so that's 4 million shares hitting the market on the short side that could drive the price down quite a bit as it looks like it was...

https://www.investopedia.com/terms/d/deltahedging.asp basic video here explains it well.

Just my opinion but delta hedging is usually something left up to those who carry a large portfolio of various option trades. Whether it be market making or just a vast portfolio of various small positions you can offset your deltas by either either selling / buying futures against your overall...

I've followed some of the education from the gang at Tasty Trade and there is an argument you can just keep rolling and collecting credit until the stock reverts and you become profitable. I get it in theory but a couple caveats. One if the stock goes to zero you can roll puts for nothing as...

You're basis is the strike minus the premium of .15 so you are long the stock at a basis of $1.35 or strike minus the premium collected. I think this is how to look at it.

Week 9 - update totals VXX as hedge long 1 12 call @ .88 sold @ 1.11 +0.23 QS 1:2:1 call 58-60-62 @0.42 sold @ 0.90 +0.48 FUBO 1:2:1 call 30-35-40 @ 1.58 sold @ 0.39 -1.19 RIOT 1:2:1 call 62-65-68 @ 0.55 sold @ 1.35 +0.80 TLRY 1:2:1 call 27-30-33 @ 0.67 sold @...

I use the screener on Finviz sort by high IV and look for optionable strikes and then just go through each one on TW and look for large outlier of high OI relative to other strikes. If most end up being call flies on set up then i will hedge in VXX with a long option or back spread call spread...

Week 9 - Update Put on the following flies all with expiration 3/19/21 VXX as hedge long 1 12 call @ .88 QS 1:2:1 call 58-60-62 @0.42 FUBO 1:2:1 call 30-35-40 @ 1.58 RIOT 1:2:1 call 62-65-68 @ 0.55 TLRY 1:2:1 call 27-30-33 @ 0.67 GME 1:2:1 put 190-200-210 @ 1.15 SPCE 1:2:1 call 32-35-38 @ 0.99

http://www.sweetbobby.com/

well done. thanks for the update.

Where are you at versus the index? Have you caught up on that 2 percent?

You are understanding it correctly but if you think the run up in CAT is over why not just sell your original call and book your profits? Do you have a price target you're expecting for April 9? For example is you are thinking it will be at 235. You could sell 2 of the 235 calls and buy 1...

amen

I will throw this out there as an idea. My father made a living trading commodities for large grain houses and in the end for his own accounts managing some private money for a few years. He always had a trading partner. They traded different commodity groups. One the softs one the grains...

Man I'd puke. I puked when I blew up an account. Had a friend had a good philosophy with his crypto stuff. Once his account doubled took out his original investment put it elsewhere now it takes the emotional stress off of trading going forward with the winnings because it he knows bitcoin...