[OC] I sell options for a living. Here is a glimpse into what a typical month looks like. My October performance.De3NA t1_iy3jinu wrote
How large is your portfolio? What’s the difference between this and going long vs shorting
NattyLightLover t1_iy3l6rf wrote
Options have a lower delta than stocks so they move less (dollar basis) when the stock makes a move, but they are leveraged so it costs less and thus move more (percentage basis).
If you hold a call you bought through expiration, you will buy 100 shares at the strike price of that option. If you have sold a call to open(short) and hold it through expiration, you will be assigned 100 short shares at the strike price.
If you hold a put your bought through expiration, you will be short 100 shares at the strike price. If you sell to open a put and hold it though expiration, you will be assigned 100 shares at the strike price.
With a short call and a short put, because you sold them, if your option gets assigned you still keep the premium.
De3NA t1_iy3ohko wrote
So they’re playing IV? That’s why they have this return? Trying to dissect this
NattyLightLover t1_iy3olvv wrote
IV or Theta
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