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1) Options decay. Protection costs. 2) When wrong and UL drops, you lose UL value down to strike plus decay. Huge drop and you lose entire cost of protection as well. To succeed, you'll still need some degree of timing and selection. More rights than wrongs or larger wins than many...

Same answer as before. If the UL cooperates, you win (as long as the net premium received exceeds the -2 pt value of the guts strangle).

With basic vanilla option strategies like a vertical spread, the Greeks aren't essential or for that matter, even necessary. You set your price alerts and barring a gap, adjust or close if it gets there. But suppose you had a number of different option positions in XYZ, long and short and...

What you can do depends on a number of variables - time elapsed (profitable decay), how far away expiration is, distance to strikes, how many strikes away the write is, liquidity (B/A width), etc. Modeling adjustments with available premiums will give you an idea of what's best (a risk profile...

I've made money a number of ways. A variety of vanilla option strategies, gamma scalping, volatility trading around earnings and during the GFC of '08 to '09, a handy sum using some simple Excel mathematical formulas for equity trading. Are any of these essential to making money in the...

UL = underlying Yes, appropriate short straddle hedging on 1 or 2 days to maturity can one be using gamma scalping concepts. Yes, it can be done "simply" by tring to be long above the strike or short below it on the underlying for the same notional? :)

Geez, we've been demoted from billionaire trader status to millionaire traders? What's happening to the neighborhood?

Once upon a time everyone thought that the world was flat and that you'd fall off the edge if you went too far. And some ignorantly believed that the sun revolved around the earth. I bet Galileo and Columbus spouted a lot of gobiligoop jargon about this and that as well... There are many...

Hey! Any idea what the title of that thread is? Thx

It's efficient when the UL cooperates. See "Gamma Scalping".

Or maybe it adds small credits very slowly?

Adjustments can also be made to winning positions. If you have a wide condor and you had some price movement (but still a good distance away from the short strike) and the passage of time (decay), the UL may no longer be equidistant from the short strikes. Rather close the entire position, you...

He needs to place a mirror on the back of his car so that when he looks in it, he can see what's in front of him that's passing him by :)

I've been waiting for Greece to slide into the Aegean and take the Euro with it :)

Ummmm, how is that non-directional?

Understanding it will only confuse you :)

The act of selling calls doesn't have a lower probability of exercise than buying them. If ITM at expiraration, it's assigned. CC's have a lousy R/R profile. In a bear, you outperform the long investor by the premium received... so you take a modestly smaller beating. In a bull, you...

It's a modest skew trade because you have 2 more long puts than short calls, assuming little price change. The more the IV rises, the more flatness you lose b/t the strikes and its shape starts to approach the slope of a long put position. I blieve this would apparent if you model the...

Try utility stocks :)

I'm a lightweight when it comes to the Greeks and I know nothing about PM. So what am I doing here??? :) Your equidistant 60 share collar isn't going to benefit much, if at all, from a bump up in IV because what you gain on your long put will be lost on your short call. In addition, any...