The IV risk with short strangles

[Windlesham1]

You need to rethink things...

Yeah right 23 years of options trading and consistently profitable- you?

 

[Windlesham1]

you didn’t specificy delta hedging the strangle. Two different trades completely and the hedges strangle still has infinite loss risk on both sides (unless it becomes a married put or a covered call, but then you are likely massively underwater)

I said MANAGE your risk with a strangle. And nobody long term wins with covered calls -Google it.

 

[newwurldmn]

I said MANAGE your risk with a strangle. And nobody long term wins with covered calls -Google it.

I wouldn’t make such extreme statements.

When you manage your risk in a straddle you are always naked short at least one side (unless you are buying options to manage the risk, but that’s not a strangle).

covered calls are basically long 50 delta. You are basically saying no one long term wins being long the market. There are many studies that show covered calls programs perform slightly better than just being long.

Theres a reason what options level one is covered calls (anyone can trade it) and options level 4 is naked strangles for every retail broker.

 

[newwurldmn]

Yeah right 23 years of options trading and consistently profitable- you?

which is why I’m surprised you made such an extreme statement. You have always been more nuanced.

 

[taowave]

Goldman Sachs research would disagree with you,not to mention backtesting your beliefs

I said MANAGE your risk with a strangle. And nobody long term wins with covered calls -Google it.

 

[taowave]

Maybe you are successful,but You sound like a complete noob..

I call bullshit...

Don't worry about me..Im good

Yeah right 23 years of options trading and consistently profitable- you?

 

[Windlesham1]

Goldman Sachs research would disagree with you,not to mention backtesting your beliefs

Garbage -decades of research show covered calls are a disaster. GS are just there to take money off mug punters

 

[Windlesham1]

Maybe you are successful,but You sound like a complete noob..

I call bullshit...
Well ditto sunshine- let's see your trading record- I run a blog placing a trade every week- now on trade 289. I'm not allowed to put the link here, but it's for retail traders who need a gentler introduction to options. I hope you manage to become profitable someday.
Don't worry about me..Im good

 

[newwurldmn]

Garbage -decades of research show covered calls are a disaster. GS are just there to take money off mug punters

i love to see this research.

 

[taowave]

Why would you compare a covered call/short put with a strangle??

You appear to delta hedge strangles,so comparing a somewhat neutral strategy with one with a delta that you don't hedge makes no sense..

And what is the bad part of the underlying???

Are you suggesting a naked put has an edge over the covered call??

Your post doesn't make slot of sense,and it's not due to the complexity

Just watch your gamma near expiry - Strangles are not the worst trade-that would be covered calls, and the bad part is the underlying