I bought a call and a put for next Friday 6/7 both @ 192.5. It seems to be the current sweet spot. Aapl swings like crazy through the week. My thought is to (obviously) sell both if/when they hit ITM. I know it's straddling but is this a good strategy or am I putting too much risk in it by paying for the higher premium. Should I just do 0DTE or 1DTE with the same strategy?
Posted by InternationalLoss440
4 Comments
0DTE
I’m new so don’t do anything based on this question, but doesn’t theta take a significant portion at this point?
I did pretty well on this one but I do 2 week options minimum. Sold right at open before the dip. I thought about buying it back near the bottom but didn’t like the volatility action. Never be greedy and cash is good.
Works great 3-7 days before earnings (sell before earnings.) The increase in IV (mostly) offsets the theta.