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Also, with options, I find there is much more versatility with delta/theta choices on different date strikes that seem to give an edge so that even if direction does not move in my favor, I come out either b/e or much smaller loss than with the underlying alone. Ie it mitigates risk, without...

Not sure what you mean -- 'pure gamma plays'. Still relatively new to options strategies beyond what I've developed here. Can you explain? please excuse my ignorance. I am still trying to understand 'gamma' strategies and how they impact how I trade. Theta works for me in my selling of spreads...

"Imagine if options did not decrease over night. An investor could buy a straddle at 3:59 EST and close the position at 9:30 the next morning for no theta risk but get exposure to long gamma. If this were the case, everybody would be doing it which would push the option prices up." Yes, that...

Hi, Does theta decay occur overnight? If so, generally speaking, how much does this impact the overall daily decay? I know theta is a mathematical model and not a mechanical formula that can be applied in real-world. But, in general, how does overnight theta decay contribute to overall theta...

Yes, that's my fear also. Hence my attempt to hedge my spreads via opposing naked options or with an opposing spread. But this works only when price moves in my direction at some point after the initial trade. Thus the importance of a good initial entry. Also, probably my scalping is more at...

Thanks for the comment; it's appreciated, esp implied vs historical volatility, this distinction makes sense. For me, IV is just a general gauge, especially on intraday, I don't think any intraday IV calculation is consistently accurate. Question: how is it that retailers selling index options...

Apologies if my first post was not that easy to understand, I may not be using all of the technically correct lingo, being self-taught from various sources. My strategy attempts to incorporate statistical analysis (1 sigma expected move based on options IV for the day) and technical analysis...

thanks

Thanks for the reply. However, because of my frequency and type of trading, I won't be filing under 'capital gains/loss'; this category, as I understand it, is for investment-type income. Since I trade frequently, probably thousands of trades a year, I think CRA wouldn't allow this. Therefore I...

If I had enough capital, I think I would scalp the underlying if the conditions where right. But I think I would continue trading vertical spreads along with "hedging" with options, as this is generally less risky than the scalping I do.

Here's a screenshot of a more typical 'ideal' trading day last week. Trading with about $200 capital, profit of $32, net.

Started trading about two years ago. Made all the rookie mistakes, and lost $10K+. I didn't declare in taxes, assuming that a negative income is of no interest to CRA. However, the turnaround seems to be happening, and I hope to make small profit by years' end, and hopefully more next year. My...

Actually, high IV is better, as I can sell the spreads at higher prices and can go further OTM for same price. I've noticed that as the IV has drastically decreased in the last five weeks or so, I've had to go closer to ITM spreads and take higher risk of my legs being bought out early by my...

Hi, First time poster. Been trading for about a year and a half. Finally seem to have a strategy I like that is profitable. Would like feedback from experienced traders or others who trade a similar way. On M, W, F, I calculate the day's expected move based on the implied volatility of the...