We also drop in on our IV expansion project in X, and we see that--as predicted--we are being hurt by the increase in IV over the last four days.

]]>We also drop in on our IV expansion project in X, and we see that--as predicted--we are being hurt by the increase in IV over the last four days.

]]>We also drop in on our IV expansion project in X, and we see that--as predicted--we are being hurt by the increase in IV over the last four days.

]]>With our XLE position in the portfolio, we see exactly that, as we choose to highlight duration over direction first and foremost.

]]>With our XLE position in the portfolio, we see exactly that, as we choose to highlight duration over direction first and foremost.

]]>With our XLE position in the portfolio, we see exactly that, as we choose to highlight duration over direction first and foremost.

]]>But, remembering that a position’s P/L is only driven by delta, theta, and vega, we can hold this position right up until earnings, strip away the P/L that resulted from both delta and theta, and isolate just how much the expected IV expansion over the next week actually hurt us.

]]>But, remembering that a position’s P/L is only driven by delta, theta, and vega, we can hold this position right up until earnings, strip away the P/L that resulted from both delta and theta, and isolate just how much the expected IV expansion over the next week actually hurt us.

]]>But, remembering that a position’s P/L is only driven by delta, theta, and vega, we can hold this position right up until earnings, strip away the P/L that resulted from both delta and theta, and isolate just how much the expected IV expansion over the next week actually hurt us.

]]>Ultimately, we choose to leave our Butterfly on for at least another day, as doing so gives us multiple ways to win on this trade. Then, we add a new type of Ratio Spread, a 2:3 Ratio, as opposed to simply widening out a standard 1:2 Ratio.

]]>Ultimately, we choose to leave our Butterfly on for at least another day, as doing so gives us multiple ways to win on this trade. Then, we add a new type of Ratio Spread, a 2:3 Ratio, as opposed to simply widening out a standard 1:2 Ratio.

]]>Ultimately, we choose to leave our Butterfly on for at least another day, as doing so gives us multiple ways to win on this trade. Then, we add a new type of Ratio Spread, a 2:3 Ratio, as opposed to simply widening out a standard 1:2 Ratio.

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