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Because of negatve gamma, when you sold your futures, you were already short deltas. Selling just made you shorter. That's doubling the risk. If you were really 'scalping negative gamma' you would have bought even more futures (to get delta neutral again), not sold the ones you bought...

When you have positive gamma and the underlying moves, your position accumulates LONG deltas (higher move) or short deltas (lower move). When you buy or sell some of the underlying to neutralize those deltas, you are scalping your gamma. The difference is: With long gamma, you are...

For the risk you are taking by owning a position with negative gamma. Theta is your profit when the gamma doest hurt. But that has absolutely nothing to do with scalping negative gamma. You cannot scalp negative gamma. You can double up; you can go long or short any time you want; but...

OK. But you are NOT scalping your position. You are opening new positions, in addition to your current position. Then you are taking a profit and closing the new position. You could do that with or without the original posiiton - thus, you are not 'scalping your position.' What you are...

I don't believe you can earn a profit by gamma scalping with negative gamma. With neg gamma, you buy rallies and sell dips to neutralize delta risk. Mark

Obviously, each trader/investor must trade according to principles that fit his comfort level. But, how does taking a leg reduce risk? Sure, if you COMPLETE a scalp, you get to book some realized gains and make extra money. But, b/a spreads are very wide and getting into and out of...

1) Luckily for me, I'm essentially 'all in' so have added just a couple of tiny call spreads over the past few days. 2) So far, I have been ok (lucky) with my Oct shorts. No strikes have yet been breached. But, one is getting close to the money (RUI 730) and I doubt that I can get away with...

Hi Phil, Didn't take it personally. Just mentioning that not everyone here is a trader. And for anyone attempting to time entries and exits (and that includes almost everyone here), your suggestion is excellent. Mark

Interesting point of view. A trader's point of view - and a very good diea for anyone who considers himself to be a trader. I am not a trader. I am a money manager and a risk manager. I open positions and let the profits take care of themselves. My job is to make sure risk stays in...

Thank you

OK. I give up. How do I change these settings? Mark

Yes. But a well-reasoned and intelligent opinion. Mark

Once you have held the positon for the 2 weeks you mentioned - and once your position has re-evaluated and you have earned the profit that resulted from taking the risk, that profit is the amount currently at risk - not your original investment. Thus, it's entirely reasonable to do as Phil did...

I don't keep records of which spreads were put on on which day, but today, I had just a tiny bit of free margin so I opened a one lot spread on the rally: Bot MID Dec 830 call; Sld Nov 800. Credit 95 cents. I have this same spread from some time ago when I received a credit of $1.60. One...

That's the point. I am NOT interested in playing deltas. But sometimes, these diagonals turn into short-term delta plays, even though that was not my intention. Appreciate your detailed response. Mark

I'm virtually 100% invested. About half in Nov/Oct and the remaidner in Dec/Nov. To me, avoiding paying a debit for my positions is an essential element of my methodology. Why? If the market runs away from my strikes, I'm guaranteed a profit. One less thing to worry about. I'll trade the...

Your position is a typical calendar butterfly. The objective is for the near term short to expire worthless, leaving you with a 2:1 backspread (long lots of gamma and theta working against you). You then have a choice: close the backspread for a profit, or hold, hoping (as one does with any...

Does cheering realy help? If so, please tell us the words. Mark

I very seldom post there. It's too confusing and I cannot find my way around. Mark