taxman....re: "gamma, delta...sounds greek to me"
not sure of the relevance, as the gamma and delta are both in motion and are far from a constant. in any option trade there exists only two constants, strike and expiration....all else is hyperbole.
if i sell a position i have cash in and a premium that my simplistic mind can equate to an annualized return on my capacity. come time to close the position be it expiring worthless, at a loss, or some where in the middle, the goal is on balance to pay back less then what you originally received on the sale.....sort of a simplistic concept that most successful gaming house use....
you mention "other factors", "difficult to forecast"....sounds like in your mind they only exist on the sell side?
the definition of delta is in itself "theoretical", as it only looks at the moment, no more, no less...come tomorrow two things certain, a new day and a change in delta....why be concerned about that which is an extreme short term indicator??????
you are too sophisticated for me, i prefer simplicity ...too much complexity equates to no fun, no fun equates to worry, worry equates to indecision.......just a layer of obfuscation!
i can't make(or lose) a thing until i close the position...how i got there and how the alphabet reacted means nary a thing! can only spend profit...k-mart doesn't accept payment in drachma! |
