Best way to reduce theta burn???

[atticus]

Quote from Pa(b)st Prime:

Let's say I sell 950 calls and buy 900 puts at even. (not doable right here, but as an example.)

Can you describe other than short deltas things I should know or look out for, greek wise? Thanks!

The closer the strikes the closer the replication, of course. I covered the vol-risk a little in the above-post.

Generally, if you're correct on price you'll exceed your modeled-delta gains due to smile.

 

[Pa(b)st Prime]

Ah. I was wondering because i did this on the Pound a few weeks ago 165c's vs. 162p's and did a bit better than I thought I should have. Now at least I know why, lol.

One more question while I've got you: I'm long the 167-170 July ratio 1-2. You'd fly this asap, eh?

Quote from atticus:

The closer the strikes the closer the replication, of course. I covered the vol-risk a little in the above-post.

Generally, if you're correct on price you'll exceed your modeled-delta gains due to smile.

 

[atticus]

Quote from Pa(b)st Prime:

Ah. I was wondering because i did this on the Pound a few weeks ago 165c's vs. 162p's and did a bit better than I thought I should have. Now at least I know why, lol.

One more question while I've got you: I'm long the 167-170 July ratio 1-2. You'd fly this asap, eh?

Yeah, I never backspread w/o wings.

 

[Pa(b)st Prime]

Quote from atticus:

Yeah, I never backspread w/o wings.

I keep telling myself I'd LOVE to be short at around 171 and at least if they ramp I'll have some extra bullets banked as opposed to starting short from scratch. But if anything bro, on a breakout to new swing highs I'm going to get longer somehow. I have so many questions I could ask you about combining calendars and some funky ratio type stuff, etc.

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