no analysis of greeks when trading options

[dagnyt]

Quote from spindr0:

Hey Mark, LTNS

No flak back atcha

As I stated, I just don't see what Greeks will do for a covered call writer. You know you buy price and premium received. You know your cost basis, return if unchanged, return if assigned, etc. Every day you know where you stand - stock gain or loss and premium decay/change. What's alpha, beta, vega and schmega going to tell you that's so important?

You are right. But schmega? You overlook the importance of schmega.

Mark

 

[nixodian]

Quote from OddTrader:

imo, both yes and no, very much strategy-, timeframe- and style-specific! Just 2 cents!

Thanks for post(s) OddTrader and all,
time frame is usually a couple of days, weekly or monthly (max) to expiration. as l said l almost always do credit vertical spreads based on candle stick charts. some might b taken aback with the short time frames, and at fraction of the premium they might b collecting with longer time frames, its down to perception of risk, as lots can happen, esp in todays world, that will move the underlying up / down dramatically.
l am aware of gamma risk, and usually buy back and sell the next expiration rolling up / down strikes when the option is ITM, rare,
the thing is, what are your opinions, when the best time to roll over is?
read that once the premium has reached double and certainly before it gets ITM. opinions?

 

[OddTrader]

Quote from nixodian:

Thanks for post(s) OddTrader and all,
time frame is usually a couple of days, weekly or monthly (max) to expiration. as l said l almost always do credit vertical spreads based on candle stick charts. some might b taken aback with the short time frames, and at fraction of the premium they might b collecting with longer time frames, its down to perception of risk, as lots can happen, esp in todays world, that will move the underlying up / down dramatically.
l am aware of gamma risk, and usually buy back and sell the next expiration rolling up / down strikes when the option is ITM, rare,
the thing is, what are your opinions, when the best time to roll over is?
read that once the premium has reached double and certainly before it gets ITM. opinions?

I am still a newbie of options. Probably the answers you seek could be found from some books from McMillan, Cohen, Augen, etc. Some old threads on ET might be also helpful. Or the best way could be practising many minimum-size trades realtime!