Killing premium but also killing all traders that thought they were brilliant looking at a chart and selling 5450 calls to give it a little buffer above the "obvious" short at 5400.  They need to hold it here for a couple of days to cash in on the squeeze past "obvious" levels. If they let it drop below 5400, all those traders win.

    I'm very familiar because I'm in the trade.  The difference is that I'm not feeling any pain overall because I've stuck to my guns and stayed delta positive even when a pullback seemed imminent. 

    If we were to drop

    Posted by DigiNomad on 14th of Aug 2024 at 02:14 pm

    If we were to drop 50 points it would go from being a decent week to a homerun. My experience is they aren't going to let that happen.....too many people in the exact same trade as I am. If they do drop it, the play for them would be to drop it hard and fast.  Wipe out all the people selling puts that don't know how to neutralize their deltas each day. 

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