Wheel strategy un hedged

[ironchef]

Are you more capable because your "model" is better or are you a better "fundamental" analyst?

Because I am directional and don't hedge.

 

[taowave]

Lol!!!!

Do you trade shtock or options for direction??

Because I am directional and don't hedge.

 

[wxytrader]

You are missing the point...What percent of spot call do you sell to get .65 on a 1 day option?

What do you mean? All of it.

IWM

 

[taowave]

Lol!!!!!!

Can I get some help here???

What do you mean? All of it.

IWM
View attachment 330460

 

[wxytrader]

Lol!!!!!!

Can I get some help here???

What are you asking? LOL. I get the premium...who cares about spot price?

https://seekingalpha.com/article/4629850-tsly-etf-best-move-to-avoid

See TSLY is doing the exact same thing but with a synthetic long. I am doing it with actual shares. I basically figured out from my basement what it probably took a room full of finance grads to figure out. Right down to the weekly adjustment. I could have told them that...go for the IV premium near expiry.

 

[wxytrader]

There is no theoretical edge mechanically selling calls or puts. MM are not charitable.

What do you call dividends then? This is the same thing...oh wait are MM taking back premium now? lol

 

[Slow Learning Elf]

Can I get some help here???

Nope, you’re on your own!

 

[Slow Learning Elf]

I basically figured out from my basement what it probably took a room full of finance grads to figure out. Right down to the weekly adjustment. I could have told them that...go for the IV premium near expiry.

In a wheel, are long the stock and short the call (ie short a synthetic put) or flat the stock and short a put. So you are always losing money when the underlying is going down and don’t make any money (beyond the premium) when underlying is moving up. Feels a little like a missionary position, doesn’t it?

 

[ironchef]

Lol!!!!

Do you trade shtock or options for direction??

Options

 

[taowave]

Dude is relentless

Nope, you’re on your own!

In a wheel, are long the stock and short the call (ie short a synthetic put) or flat the stock and short a put. So you are always losing money when the underlying is going down and don’t make any money (beyond the premium) when underlying is moving up. Feels a little like a missionary position, doesn’t it?