RWM ok to hold longer than a day?

Quanto said:
This is originally intended for an EventTrading where a high-impact-event is expected to occur before expiration.
In this case the stock price and IV do not make any big moves till the event.
So then due to time-decay the options get cheaper and cheaper, even reaching 0 (in reality 0.01)...
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lol so you’re attempting to model the put post-event. What happens when the event causes spot to plummet? Explain it to the OCC and have them advance you the money. Today.

youse make a compelling argument!

why bother buying the put at all? Post event vols-collapse so just cover your primary short gamm and buy some flooring!

Dude, what you propose in your modeling is r*tarded. You suck. Especially at this.
 
destriero said:
lol so you’re attempting to model the put post-event. What happens when the event causes spot to plummet? Explain it to the OCC and have them advance you the money. Today.
youse make a compelling argument!
More...
The event is good for us, just watch the PnL chart.
It is even much better if we were able to apply Step 2 of The Plan (but this is even just optional! Not even mandatory to do! :))

Step 2 allows us to improve on the construct whenever it makes sense, and it does make sense when the OTM options become cheaper due to time-decay. One just tests it in the simulator to see whether the PnL chart would improve.
By this method one also can increase the leverage x-fold...
It's a powerful mechanism.
 
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wxytrader said:
The parameters:
  • Pick any stock you want. I ran TSLA, NVDA, SAVE.
  • Sell daily -1 ATM puts. When assigned sell +1 ATM calls.
  • Calculate the realized losses when shares called away below assigned strike.
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What does "-1 ATM" mean?
"StockPrice - $1", and similar for "+1 ATM" ?
 
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