I understand that once you are in deep ITM position, it behaves kind of like underlying so delta becomes the most important greek while theta becomes very low. So does it matter when to sell this option? Since there will be very little time decay, what are the risks to holding this over the weekend/FOMC?
Position: ADBE 550 put 9/27 exp. ADBE is 537 premarket and probably sheds more once market open.
For deep ITM options that expire 2 weeks after bad ER, is time on my side?
byu/DryPriority1552 inoptions
Posted by DryPriority1552
1 Comment
Time is never on your side unless the stock is moving in the direction you want it to move. If you think Adobe will be higher in 2 weeks you should just sell. If you think it’ll be lower in 2 weeks than where it is now, you might consider selling the 480 or 500 put to take advantage of the high premiums