/biz/ - Business & Finance

>>12605225
>>12605470
tho i suppose worse comes to worse, you should just ditch one of the puts you got, which should leave you with some spare cash to buy enough stock to cover your negative deltas on the remaining put

remember:
however big your delta is on your puts, thats how many shares you need to buy in order to hedge. this will change slowly over time, but you will be SEVERELY limiting the damage

personally, i think that the market will hit a wall this friday and either pull back, or crash out hard again so you might not be as screwed as you think you are desu (tho liquidity on contracts gets kinda thin when ur out 717 days lol)

heres a pic of what it would look like if you took on this position >>12605199 into close. you would actually be MAKING money by the time QQQ hits 167.20

desu tho, i feel a little uneasy about recommending you to trade more options lol.

>so if i'm reading this right
eh kinda

>1) i reverse my position and go for positive net delta if i'm starting to feel bullish
the goal is to have NO deltas

>2) try to time the market and sell off my long positions when i'm ok with the the loss, think the market is falling, and/or emotionally break
if you have net zero delta, you will not be losing money (overall at least. the puts will lose some, but it will be counteracted by your call and stock)

>3) i hold everything, maybe roll up my $145 up to something higher if QQQ is too high for my tastes?
the rollout is for the CALL. NOT for the put. youre trying to make it so you lose as little money as possible on the way up by making your net delta as close to zero as you can

desu you might want to consider the idea i posted in THIS post since youre new to derivatives. youre MUCH better off hedging your puts with QQQ shares alone, NOT QQQ calls, because of all the other shit that goes on with options.

remember:
1 share long = one less delta on your put position
+/-10 delta means youre position will move like 10 shares long/short