How to short the S&P using options? Day & swing puts
- Thread starter KCalhoun
- Start date
Go with the 30 delta series a month out. On puts you'll earn on vols (if mkt drops) and with calls you should earn on sticky as long as you're trading index. If you're getting flat within a day or two there won't be any significant greeks outside of delta. Don't hold the vol into macro releases and you should be fine.
I would recommend against dynamic-adjustments to the positions. IOW you're long an SPY call and it begins to move against you. Don't sell 50 shares to effect the small combo bc your original bull position will lose if it reverses towards your strike. Daytrading with singles is tough mostly bc of microstructure; you're not adept at it and will likely be lifting offers and open the trade with 4-5 cents in edge loss. With futures, at worst, you're in for a tick (edge loss).
I almost spit out my water when I read
and saw the South Park video!
F*cking options. I learned the hard way that I don't like to touch anything with < 10 DTE or anything deep OTM. I'm impressed that other people can trade that stuff productively.
"welcome to the world of Theta"
and saw the South Park video!
F*cking options. I learned the hard way that I don't like to touch anything with < 10 DTE or anything deep OTM. I'm impressed that other people can trade that stuff productively.
- Theta had very little to do with the 445 Puts declining from $0.66 to $0.14.
- Most of the decline was due to the SPY going from about $444.81 to about $446.10 - up $1.29 in a very short period of time.
- Delta was the big influence on the options in this case.
Just out of curiousity,what was your Delta/Theta ratio on the open (448.64)??
And yes,when it goes ITM with O DTE,it's all Delta
And yes,when it goes ITM with O DTE,it's all Delta