Posted by DigiNomad on 3rd of Nov 2022 at 12:17 pm
Donkeyface, I use your line of reasoning to convince myself to
hold onto net short delta in SPX. If I'm forced to defend a strike
(say the market goes to 4200 where I'm currently short) then I
would feel much better about rolling up and doubling down than I
would if the market dropped to 3400 (where I currently have short
puts). On the long delta side, I could get caught in a waterfall
type event (e.g. SPX to 2900). On the short side, I'm pretty
confident the market isn't going to pop 15 percent on me, and if it
does, I wouldn't mind rolling up to 25% level, even though it would
involve adding more short delta / risk.
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Donkeyface, I use your line
ES 1hr, 30 min
Posted by DigiNomad on 3rd of Nov 2022 at 12:17 pm
Donkeyface, I use your line of reasoning to convince myself to hold onto net short delta in SPX. If I'm forced to defend a strike (say the market goes to 4200 where I'm currently short) then I would feel much better about rolling up and doubling down than I would if the market dropped to 3400 (where I currently have short puts). On the long delta side, I could get caught in a waterfall type event (e.g. SPX to 2900). On the short side, I'm pretty confident the market isn't going to pop 15 percent on me, and if it does, I wouldn't mind rolling up to 25% level, even though it would involve adding more short delta / risk.