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Hello, I didn't have time to do much trading in the past few months but was interested to know if anyone is trading the strategies discussed in the article I linked earlier. Given the higher volatility we have seen recently, it would be great to learn from the experience you had trading these...

This book is very practical, covering theory and practical examples of how to manage the strategies in trouble. Available here on Amazon.

Thank you, yes that's what they are suggesting here. But to calculate these butterflies with extremely small strike distance we should interpolate and I am not sure about 2 things: what interpolation to use (not sure it really makes a difference on such small grid) and, more importantly, how...

Hi, I have read the article below and trying to replicate the calculation of the implied distribution. Any suggestion about the interpolation and how to derive all the prices we need? The original article at https://tradingmatex.com/volatility-smiles-and-implied-distributions/

Hi guys, thanks for all the suggestions. It looks like none of these offers the ability to simulate an adjustment. For example, say I move vol and underlying to simulate an adverse move for my strategy and I want to simulate which adjustment to make to the strategy under the new simulated market...

Hi, do you know if there is any free software/website that offers scenario analysis for options? I am looking for something to help me understand how much my strategy would likely be worth under given scenarios for underlying and volatilities and also be able to see how adjustments to the...

Hi, sorry why you say that the strategy reduces theta losses at the expense of delta gains? Tha article actually shows the comparison between the strategy and a simple PUT ITM. They both have delta 80 (see the first strategy comparison here https://tradingmatex.com/options-as-stock-replacement/)

This article shows also a comparison with micro futures https://tradingmatex.com/leveraged-etfs/

Well I guess that assuming the move will realize over a longer period of time will add complications given delta will decay as well. So I was thinking a situation like this: each day I know my basic greeks and I want to be notified when the underlying reaches a point where my delta hits a given...

Thanks, that's a good suggestion. But what if I don't have access to the chain? I only know that my option is now delta 0.5 and want to put an alert when the market moves X points cause I expect that my new delta would be approx 0.6 at that point.

Hi, suppose that current delta is 0.5 and that I want to know how much should the underlying move approximately in order for the delta to move to 0.6. I know this will depend on many variables, including implied volatility, but is there a quick rule of thumb I can use to get this info based on...

Thank you, @jamesbp it is useful to see the strategy as core + financing. Btw, I have found interesting the strategy of the article because I have always found very frustrating when market doesn't move and you see your position losing money because of the time value. Having positive gamma and...

Thank you @jamesbp for these alternatives but the straddle has time values to be paid so it is not exactly comparable to the strategy in the article, is it? Also, as @stevenpaul said, thestrategy they are talking about is uncapped so that would really only be comparable to strategies having at...

Hi @stevenpaul I am not sure why the theta is negative but if you look at the scenarios tables under the plots, if underlying doesn't move the P&L at expiration is just -1 USD. So I am not sure why the platform shows a negative theta. Do you have the chance to plot the strategy as you built...

Hello everyone, there is a new article on this website I follow that I wanted to discuss. The article is here: https://tradingmatex.com/options-as-stock-replacement/ After reading this, I have two questions I would appreciate your help on: The article says that "in the last few days the...

Thank you guys. Since I never got a short position exercised, can you tell me how that would work in practice? Do I get notified immediately of the exercise but have time until end of day to settle? So in my example, if I have a long option that is more ITM than the short one that got...

Let's assume that the strategy is a simple put debit spread on SPY: 1) 1x long put strike 450 2) 1x short put strike 440 Say that SPY drops below 440 and my short put 440 gets exercised. In theory I would expect to be forced to buy 100 units of SPY at 440, so I will need to have 44k USD...

Love this strategy! The positive Vega has helped a lot compensating the slightly positive delta during this market drop. Closed everything and will reposition at lower strikes and next expiry. I believe this strategy has a nice hedged nature that is really helpful. I feel quite comfortable...

Thank you Matt, when you say "we do not have the ability yet to show fractional underlying with the options strategy" what do you mean exactly? Because for example I simply doubled the quantity of options so that I could work with one single micro future. In their strategy they are using 5...

Trying to replicate the bullish strategy discussed in the article. Here I am using micro ES future options. The original strategy has a short put OTM on the first expiry which partly finances a bull call spread OTM on the second expiry. On top of this, a negative 0.5 Delta is added via futures...