Long an SPY put 350 calendar Apr16/Jan22 but theta and upside is killing me. Any random thoughts would be appreciated! Obviously fingers crossed for Vega pop.
Vega hopful...
- Thread starter toomanyloses
- Start date
Can't you let the Jan 22 short expire and then just keep rolling selling another SPY 350 put against it as you cost down your April 16 long put waiting for the big move down and and a pop in vega? On Jan 22 buy in your put and then fell a Feb 19 350 put. I think ideally in your calendar set up you'd want the front month that you are short to have a higher IV than the back month you bought. Your initial set up has higher IV in the back month which I guess isn't uncommon in an ETF this time of year. I don't know just my two thoughts.
That's the plan of course but theta decay seems to be overrunning rolling shorts here. Any non-out of the box concepts....looking for crazy ideas here. Loses seem to be my thing, so if anyone can impair the trend I would appreciate it!
Theta decay should help you with your shorts otherwise you will start to lose money on your shorts.
Theta decay is a big win agreed...any insurance against upside swings?? ie...is there another position I can put on that will mitigate ATM or upside loses?
jan 2022 or 1/22/21?
How long have you been holding this? You're short a $0.3 put against April. You're long an April put here. Sell the Feb 340P for the diagonal or pray for a drop. Vega isn't going to bail you out. Delta is.
1/22/2021; weekly.
In the 2021's...shorting the Jan 22 for now and rolling each week. Problem is the upswings...and the rolls aren't totally covering the theta decay...so bleeding a little...but worth it if there's a minor drop.
Thanks...but that's the issue...your solution depends on a significant directional bias...which if I had one, I'd probably do something else..?