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Trajan's short gamma journal
- Thread starter Trajan
- Start date
For the close I sold 500 csco at 20, I want to lean short as that is where my naked exposure is. The greeks at the close with stock at 20 are:
Delta = -680
gamma = -720
vega = 100
theta = 60 ( my previous posts for this were incorrect)
the position consists of
-800 csco
-50 20c
-20 20p
80 nov 22c
The whole short gamma thing was really a play on the Nov calls. I was looking for a way to buy these yet, at the same time pay for it one way or another. Another reason is that while I have had short gamma/premium positions on in the past year, this will be the most aggressive and complex one yet. My thinking going forward is to carry both, provided conditions are right, long/short vol/gamma. and so forth. This csco position is in contrast to the MSFT position which is long gamma. I Haven't been trading msft very well so far.
Delta = -680
gamma = -720
vega = 100
theta = 60 ( my previous posts for this were incorrect)
the position consists of
-800 csco
-50 20c
-20 20p
80 nov 22c
The whole short gamma thing was really a play on the Nov calls. I was looking for a way to buy these yet, at the same time pay for it one way or another. Another reason is that while I have had short gamma/premium positions on in the past year, this will be the most aggressive and complex one yet. My thinking going forward is to carry both, provided conditions are right, long/short vol/gamma. and so forth. This csco position is in contrast to the MSFT position which is long gamma. I Haven't been trading msft very well so far.
Ok, it maybe a day late but nothing has really changed. I sold 20 of the msft 30c for .40 and bought 500 28.48 stock against it. Also, I bought a 6 lot of the csco 20p for .50 and bought 100 stock for .22 and 200 .20. I sold 10 of th 20s for .85 and bought 600 csco for a hedge. Nothing else really came through throuth morning.
Sometimes, it is better to be lucky than good, today is no different. On Wednesday, as the market rallied, I closed out my short call position and in fact went long premium and deltas. The deltas part is more of the fact my brokerage had issued me a margin call and blocked me from selling any more stock. Today, I wake up to find myself on the right side of a big move, dumb fucking luck.
Quote from Trajan:
Sometimes, it is better to be lucky than good, today is no different. On Wednesday, as the market rallied, I closed out my short call position and in fact went long premium and deltas. The deltas part is more of the fact my brokerage had issued me a margin call and blocked me from selling any more stock. Today, I wake up to find myself on the right side of a big move, dumb fucking luck.
What was it about Wednesday's action that made you change direction? Did you get long by the closing of short positions or did you add to longs?
Not so sure it was just dumb luck. Thanx.
It was the powerfull move that day from a low of 1001 at 11:00am up to 1117 at the close for the SPX while with no major downticks. I forget the exact term for these days, but is premised on the that the first hour/ hour and a half is all noise and once that's cleared out, long-term traders enter the picture. The fact this was occuring from what was a decent base loong at an intrday chart for the last ten days and with csco at an inflection point made me pull the trigger.