Here's my position. What do I do now?

Quote from brothertruffle:

Advice needed. How can I tweak this SPY put/call spread position to improve my odds of making money?

I'm kind of new to options so don't use words like gamma unless you tell me its good.


(see attached JPG):confused:
More...

I won't dissect the line... I'll bet you were selling the puts on rallies and selling calls on breaks. You're underwater on all but two of the positions.
OK, dissected you're short bull puts and long the call backspread. Long otm calls and short otm puts. I'd imagine you did pretty well today. I would cover the entire wad on any further strength. You're quickly running out of time on these long calls.

You have some convergence risk here due to the short 129 calls. You're nearly flat deltas and GAMMAS here... so you're not manufacturing longs beyond your put position.

Dump it, now.
 
Hi Riskarb
I understand "dump it now" but
"You're nearly flat deltas and GAMMAS here... so you're not manufacturing longs beyond your put position".
What does that mean?
daddy'sboy
 
cnms2
"You need to forecast both the underlying price and your options implied volatility over their life. All three elements are equaly important: price, IV, time."
That's what I was referring to with the term "prognosis".


--------------------------------------------------------------------------------
Quote from daddy'sboy:

Brothertruffle,
Ask yourself "what is my prognosis for the underlying" and if you can answer that then your problem is almost solved.
daddy's boy
 
Quote from daddy'sboy:

I think he's long the 129 calls.
daddy's boy
More...

Yup, I thought he was short them. He's long the risk/reversal. He should be close to b/e with this move on the emp number.
 
You must log in or register to reply here.
Back
Top