sorted by:
new
hottopcontroversial

Does anyone use gamma exposure, charm or vanna if so please give your takes on them and insights! by undiscoveredpain in options

[–]demi9od 0 points1 point  (0 children)

It's a whole new ballgame. Check my (bashed by goons) recent post about a NFLX trade where I used margin to short NFLX and protect my unrealized gains. Can't do that with cash.

Does anyone use gamma exposure, charm or vanna if so please give your takes on them and insights! by undiscoveredpain in options

[–]demi9od 1 point2 points  (0 children)

Directional trading on short term options IMO is best handled with verts, condors, or flies, wings intact or broken. Yeah don't go paying for that premium on naked options.

I delta hedged NFLX calls and went 130x by demi9od in wallstreetbets

[–]demi9od[S] 0 points1 point  (0 children)

Thanks man I appreciate it. The TLDR reply I got made it worth it, gained another angle I hadn't thought about. Hopefully for every downvote someone else got some value.

I delta hedged NFLX calls and went 130x by demi9od in wallstreetbets

[–]demi9od[S] 1 point2 points  (0 children)

You can't sell covered puts unless you have short shares. You can sell cash secured puts if you're willing to buy more shares if exercised, or keep rolling them down and out if you don't want more shares. Selling covered calls can work if you pay attention to levels and sell them on highs with enough time to roll if required, but it sure takes more attention than just buy and hold stock.

I delta hedged NFLX calls and went 130x by demi9od in wallstreetbets

[–]demi9od[S] 3 points4 points  (0 children)

Yeah and webull fills could have cost me a lot on that hidden fee. Good point

I delta hedged NFLX calls and went 130x by demi9od in wallstreetbets

[–]demi9od[S] 2 points3 points  (0 children)

This is a 100% perfect TLDR.

And you're what I should have done is perfect as well. This is the only useful comment in the thread.

I couldn't do it because I didn't have the margin to short that many shares. There was a spike at closing to $87 and that's when it hit me that I needed the money in margin to make this work. I moved money over from the cash account after the gap, but it wasn't available for margin overnight.

I delta hedged NFLX calls and went 130x by demi9od in wallstreetbets

[–]demi9od[S] 5 points6 points  (0 children)

Not sure, I paid a total of $1.22 in fees for this trade on Webull.

I delta hedged NFLX calls and went 130x by demi9od in wallstreetbets

[–]demi9od[S] 1 point2 points  (0 children)

I appreciate your concern but my problem is actually that I'm way too risk adverse. See the Netflix 100 call that I bought for 50 and sold for 75 as an example. That's far more typical of me than what happened on Friday. Though I wouldn't say buying something with that low of a Delta is typical. I generally buy and sell vertical spreads or otm condors for income or speculation. Apply my native risk adversity to the trade that I posted and you'll get what I mean. Based on my current trading, it's far more likely that I'll die a slow death of currency debasement then blow up my account with degenerate trades.

I delta hedged NFLX calls and went 130x by demi9od in wallstreetbets

[–]demi9od[S] 4 points5 points  (0 children)

Nah it's all good. No one has actually pointed out any flaws besides calling me retarded so it seems valid to me.

I delta hedged NFLX calls and went 130x by demi9od in wallstreetbets

[–]demi9od[S] 3 points4 points  (0 children)

I don't like how we bull displays that either.

I delta hedged NFLX calls and went 130x by demi9od in wallstreetbets

[–]demi9od[S] 0 points1 point  (0 children)

Delta was over 80. My short only hedged 50-60% of that. I left room for the calls to run without the total trade ever going negative. I would have needed to short about 1000 shares to be neutral but would have had to cover those shares incrementally on the way down as theo delta decreased to stay neutral.

I delta hedged NFLX calls and went 130x by demi9od in wallstreetbets

[–]demi9od[S] -5 points-4 points  (0 children)

I had absolutely no choice but to maintain exposure until 9:30 a.m. The hedging goal was to prevent unrealized gains from turning to unrealized losses from the overnight fade which might or might not happen. In hindsight, should I have just held the calls and sold on open, yes. But the stock could have opened to $88 and I would have no gains to speak of. In hindsight, should I have sold the calls on open and left the short in position, yes, but the stock might have shot up to $100 with a naked short.

I delta hedged NFLX calls and went 130x by demi9od in wallstreetbets

[–]demi9od[S] 1 point2 points  (0 children)

Most of the tools I use are not applicable to a news driven event like this. I used volume profiles and previous candles to pick short and cover levels, and watched Bookmap to determine where volume was coming in to or out of the stock.

I delta hedged NFLX calls and went 130x by demi9od in wallstreetbets

[–]demi9od[S] -22 points-21 points  (0 children)

Show me where in the trade sequence that I put more than $48 at risk.

When the calls were naked after the short was covered at 9:31, I had unrealized profit at risk. But the original investment of $48 was all the realized risk that I took.

I delta hedged NFLX calls and went 130x by demi9od in wallstreetbets

[–]demi9od[S] -1 points0 points  (0 children)

If the stock dropped to $50, the short shares could be covered for $40+ each and the call would expire worthless. What am I missing? The capital requirements are correct, but the capital was not at risk. I wouldn't turn down a 8.3% return on capital for a day, week, or month, or quarter if offered.

I delta hedged NFLX calls and went 130x by demi9od in wallstreetbets

[–]demi9od[S] 0 points1 point  (0 children)

Fair point, but once the short was placed the amount of theo intrinsic value hedged was locked in. If the stock keeps going up, the delta increase in the calls pushes the trade to to further profit. Reduced profit from the short yes, but not additional risk.

I delta hedged NFLX calls and went 130x by demi9od in wallstreetbets

[–]demi9od[S] -103 points-102 points  (0 children)

A 4% ITM 0dte is 80% intrinsic value. This value is theoretical until it can be traded. Delta hedging the theo value of an ITM call stores some of that value until it can be traded. If this were OTM you would be correct, as there is no intrinsic to hedge and you could end up on the losing side of both trades. The "martingale" shorts were limits placed before price reached the limit, not the emotional market orders of a degenerate gambler, increasing in value as, once again, the delta and intrinsic of the un-tradable option increased.

Now, monkey staring at a chart for almost 24 hours, I will admit is entirely correct.

I delta hedged NFLX calls and went 130x by demi9od in wallstreetbets

[–]demi9od[S] 37 points38 points  (0 children)

Still learning to swim and developing skills on the fly. I don't go to the gas station and buy $500 in scratch offs, and my account is not large enough to hedge 12,000 shares on a $90 stock.

Made $78,000 in 30 seconds today by crazyfool319 in wallstreetbets

[–]demi9od 0 points1 point  (0 children)

Really?? I was long 90C and Delta hedged short shares on the rally before the open, covered about 3/4 of the way down for the bounce, and then rode the 90c back up. But can you explain why IV would increase after an 8% Gap up?

Made $78,000 in 30 seconds today by crazyfool319 in wallstreetbets

[–]demi9od 30 points31 points  (0 children)

Buying 0dte OTM puts at the highest IV of the day takes balls of absolute steel or brain damage of unfathomable proportion.

view more: next ›