AI
Wednesday, November 03, 2021 11:36:34 AM
Back on 10/15 I opened up a SPY Nov17 432c for $17.76 with a delta of 76% and a TV of 3.17. From a dollar at risk stand point, this was equivalent to 94.5 shares of SPXL. So I have been tracking how my option is doing compared to if I had bought the SPXL shares. I am not happy with what I see.
My option has gained $1068 vs what SPXL would have done at $962. My now I had expected the daily delta to be approaching mid 90's, but that is not the case. As of yday I was $30 ITM. Yday daily delta was only 84% and the Total trade delta is a mere 78%.
Maybe this is how options are suppose to play out, we will see. With the TV now down to $.33, I plan to hold the option until day of expiration. If market keeps rising, I expect to see some much better delta's.
There is a good lesson learned here. The TV is not down so low because of the actual time decay, but due to being so far ITM.
My option has gained $1068 vs what SPXL would have done at $962. My now I had expected the daily delta to be approaching mid 90's, but that is not the case. As of yday I was $30 ITM. Yday daily delta was only 84% and the Total trade delta is a mere 78%.
Maybe this is how options are suppose to play out, we will see. With the TV now down to $.33, I plan to hold the option until day of expiration. If market keeps rising, I expect to see some much better delta's.
There is a good lesson learned here. The TV is not down so low because of the actual time decay, but due to being so far ITM.
Trade the Charts and not the Heart - Expect the trend to
continue until it doesn't - Realtime is the real deal
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