This makes it harder to manage the position and keep it delta neutral, maybe the reason why I over-traded it in the beginning of the trade. Not justifying myself here, simply learning a new lesson..
Friday, May 29, 2009
05/28 DIA Iron Butterfly
We're now in the green! One thing I learned Yesterday while watching Dan Harvey's sessions regarding iron butterflies on ETFs is that they tend to have a high Gamma.. Looking at my position, one can see that 1 point move either way puts me in a high delta scenario because of the position's Gamma (see profile)..
This makes it harder to manage the position and keep it delta neutral, maybe the reason why I over-traded it in the beginning of the trade. Not justifying myself here, simply learning a new lesson..
This makes it harder to manage the position and keep it delta neutral, maybe the reason why I over-traded it in the beginning of the trade. Not justifying myself here, simply learning a new lesson..
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