Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals, U308 and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,059 since Dec 2013
Thanks Given: 4,410
Thanks Received: 10,226
Disagree. Delta is the sensitivity of the change in value of a derivative instrument as a function of its underlying.
If you think of it as a math formula its ($ change in value of A/$ change in value of B) and the $'s cancel and your left with a percentage.
Note this is different to say vega which is ($ change in value of A/change in volatility of A) which does yield a $ result.
To continue my experiment on how a position decays over time and if 90 days or 130 days is preferable I opened the following positions a few days ago.
Contract: OESV5 P1750
Quantity: 80 Premium: $4.55
Days to Expiration at Open: 93
Initial Margin: $978
Days Open: 8
Current IM: $872
Contract: OEWX5 P1750
Quantity: 40
Premium: $9.75
Days to Expiration at Open: 132
Initial Margin: $978
Days Open: 3
Current IM: $1,315 (ouch)
Both positions are currently underwater due to the latest pullback. The first contract has been open for 8 days while the second for just 3 so still very new. Although both positions are underwater by a good chunk I'm not as nervous as I was with my first trade because of how I saw everything play out last time. Huge gaps down didn't kill my position the way I thought it would...things moved in such a way that it gave time the chance eat away at the losses.
Here's to watching a hoping time does its magic again.
The great thing about selling options is that you have zero percent knowledge about which way the market will go tomorrow but 100% knowledge about which way DTE is going to go tomorrow.
Not really I'm selling 10-15 contracts at a time. Some of the quantities posted on here are a lot braver than me! All it takes is a bank failure to send premium skyrocketing.
Volatility is good for the market and trading.
Preservation of capital is the most important concept for those who want to stay in the trading game for the long haul. - Van Tharp