Thanks Kevin! Do puts get so expensive during these major declines that they become impractical tools for shorting?
Great point. Yes, you are correct. It's just tough to make money on the short side.
I think it depends on the speed of the move. If it is a grind down then firm's short sale hedges will work and they will keep selling you more puts.
Depending on the skew you may make more money buying calls and selling the underlying delta heavy.
That's a good idea Alan! Especially if you believe that any upside move will be larger than should be the case. You own the upside gamma cause that's where the exciting moves will be. Thanks for sharing!
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Thanks Kevin! Do puts get so expensive during these major declines that they become impractical tools for shorting?
Great point. Yes, you are correct. It's just tough to make money on the short side.
I think it depends on the speed of the move. If it is a grind down then firm's short sale hedges will work and they will keep selling you more puts.
Depending on the skew you may make more money buying calls and selling the underlying delta heavy.
That's a good idea Alan! Especially if you believe that any upside move will be larger than should be the case. You own the upside gamma cause that's where the exciting moves will be. Thanks for sharing!