The calls expire worthless because nobody takes the underlying early. The MNQ short goes back on.
Why do you have to make comments like “Dude, you’re too old to suck at this.”? I’m trying to learn something.
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Hedging the wheel
- Thread starter markthepadrone
- Start date
The calls expire worthless because nobody takes the underlying early. The MNQ short goes back on.
Why do you have to make comments like “Dude, you’re too old to suck at this.”? I’m trying to learn something.
We've done that for 11 pages. You're fixated on this silly hedge. Hedge out your D1 risk and you're left with naked short calls. Not to belabor it, but you're trying to subjectively make this a lock.
I can go long XYZ at 100 and short the 100-strike bear synthetic. The only uses of trading the conversion arb is delaying tax liability or as a rate arb. A gain on your silly hedge has nothing whatsoever to do with a covered call position.
If the hedge is effective you've made a few bucks on your short calls. If not you lose more than if you had held the CC position. You're not gaming anything here. You're inadvertently arbing TQQQ/MNQ with a short call position.
I cannot procrastinate any longer. Bye.
Ok. Goodbye.
OK. You don't understand that hedging the underlying essentially removes it from the equation and you're net a short, naked call as a result; that's fine. Good luck in your trading.
If this was really a naked call that I sold with a strike of 100 and the stock rallied to 120 wouldn’t I have to buy shares at 120 to sell them at 100? Since I already owned the stock at 100 and I drop the short quickly isn’t that just a little different?
We've done that for 11 pages. You're fixated on this silly hedge. Hedge out your D1 risk and you're left with naked short calls. Not to belabor it, but you're trying to subjectively make this a lock.
I can go long XYZ at 100 and short the 100-strike bear synthetic. The only uses of trading the conversion arb is delaying tax liability or as a rate arb. A gain on your silly hedge has nothing whatsoever to do with a covered call position.
If the hedge is effective you've made a few bucks on your short calls. If not you lose more than if you had held the CC position. You're not gaming anything here. You're inadvertently arbing TQQQ/MNQ with a short call position.
I cannot procrastinate any longer. Bye.
on top of that he has a 3x daily against a 5x straight.
there’s all sorts of basis here.
on top of that he has a 3x daily against a 5x straight.
there’s all sorts of basis here.
yes there is, but the 5X product has the kind of leverage I’m looking for.
yes there is, but the 5X product has the kind of leverage I’m looking for.
why?
I don’t have an irrational fear of assignments.
I get assigned every fourth or fifth week. Not a big deal.
Why take assignment at all when you can just roll the put strike ATM or a -.6-7 delta?
Why take assignment at all when you can just roll the put strike ATM or a -.6-7 delta?
it really depends on what’s happening. I have rolled but really didn’t see an advantage to it. If the strike is way ITM, then the premium is probably higher than what I sold it for. Really no advantage to rolling.
why?
Just not to tie up a lot of capital in what I perceive to be only a hedge. More of a bang for the buck thing
it really depends on what’s happening. I have rolled but really didn’t see an advantage to it. If the strike is way ITM, then the premium is probably higher than what I sold it for. Really no advantage to rolling.
I see a premium on puts vs calls that's not insignificant and it ties up less BP. What strike did you get assigned?