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While I'm following your explanation here, it brings up a question. Why do people then recommend long calendars into earnings? I believe I saw a couple of those in your calendar thread. Following your explanation, since the earnings IV is already priced into the back month (earnings) options...

I think I'm following you now. You'd want the higher strike to be ATM, which is why we use a 2-3-1 configuration for put flies. Is that correct? The way I was thinking about it is that because we have high skew on the downside we'd want to avoid buying more of the down & out puts because they...

I was thinking that you would still put the body strike at 159, only structure it as a 1-3-2 fly. When you are buying 2x the further OTM strike (the 155 strike), doesn't that mean you're unnecessarily paying more expensive premium (as the further OTM you get, the more expensive the IV)? In...

Why the 2-3-1 put fly and not the 1-3-2? If you're just targeting to profit from vol skew wouldn't it make more sense to long weight the cheaper side of the skew more? Also how would you plan to manage the trade on a IWM rally next week?

The position is slightly positive on deltas though. The play is neutral to slightly positive and short vol.

Why can't you read the previous posts? He posts the net positions almost everyday. I've been following the trades on ToS trying to learn. You expect to do no work and be entitled to explanations. He's 18 and from Florida, life is tough enough already, give him a break.

What is the reasoning behind negative delta/vega going into tomorrow?

Being new around here I have to say I hope all threads are as educational and entertaining as this one. But I have to ask, is this vanzandt guy for real or just a troll? Because for some reason it seems like a few people here see him as a successful trader and everything in this thread has...

Theoretically yes, but logistically it could be a hassle if you don't have the buying power, depending on the brokerage. OP is new so just letting them know it's something that could potentially happen.

This is a vertical bull put spread, but selling a ITM strike means you are taking on some early exercise risk.

Got it, very helpful. You're hoping that IV is underpriced and will go up, and still get to collect the theta premium while you wait.

Got it, thanks for explaining. I'm fairly new to this so maybe I didn't use the correct terminology. What I meant by directional was that you're betting the underlying to stay still or go up (since you have positive delta). Directional bet wasn't the right way to say it. Did you see an...

The movement of the underlying will affect the calendar price a lot more than the IV changes though. This is almost as much of a directional bet on the underlying if you don't delta-hedge. If JPM price had fallen even a few dollars, you'd have lost money on that trade. I'm also not sure why...

How often are you delta-hedging? Are you using any particular methodology?