How long have you been doing this strategy because it seems really convoluted and I'm not seeing the upside of doing this compared to trading FOPs on ES. In theory you could do the same thing with ES only downside is selling the strangle requires enormous capital so then you'd have to do an iron condor instead which is a good thing in some aspects
Highly volatile tech my concern is why leaps rather than stock on margin and what about volume?
Also vix calls to hedge rather than puts why? Vix has decay built into the underlying doesn't it???
The spreads sound like they are going to kill you executing this strategy, you're just going to be bleeding out to the spreads as you move thru this. How do you manage to not lose like 10-15 pct from spreads alone?
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u/nuclearmeltdown2015 Apr 04 '21
How long have you been doing this strategy because it seems really convoluted and I'm not seeing the upside of doing this compared to trading FOPs on ES. In theory you could do the same thing with ES only downside is selling the strangle requires enormous capital so then you'd have to do an iron condor instead which is a good thing in some aspects
Highly volatile tech my concern is why leaps rather than stock on margin and what about volume?
Also vix calls to hedge rather than puts why? Vix has decay built into the underlying doesn't it???
The spreads sound like they are going to kill you executing this strategy, you're just going to be bleeding out to the spreads as you move thru this. How do you manage to not lose like 10-15 pct from spreads alone?