SureTrader Posted September 17, 2021 Posted September 17, 2021 @Kim @YowsterI had a position in NDX like the risk analysis chart shown below last night. This is a NDX triple calendar position with shorts expiring this AM and longs on Monday. I was debating whether to let the shorts expire or close before last night. Since it's a cash settled index there is no assignment risk and I have capital to cover the longs. What would be the wise thing to do since the price is fairly centered and have ~350 point range. I bailed out since I wasn't sure if the longs premium would collapse and would create more significant loss than what's shown. My expectation is that the index price would open with in the range of the tent and I would close the longs on Friday morning. Appreciate your comments. Yesterday the IV before closing was as below Quote
Kim Posted September 17, 2021 Posted September 17, 2021 Personally I always close, never let expire. The gamma risk is too big, and without the shorts, it becomes a directional bet, not to mention the negative theta of the long options that is not offset by the positive theta of the short options. Quote
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.