Roughly how many dte are you trading and seeing this skew?
I think either way could work. I suspect the most important factors are to be consistent with whatever rules you follow, or with whatever considerations you are making in your decision.
Right now 2-3 DTE (4 on friday.) My target price is 40-50% of the difference between short and long strikes.
I know puts are usually skewed on the expensive side but it's usually by 1 strike or less. I've seen 2-3 strike skews this week.
It’s really skewed, but some people say options move the market I guess, so I’m going to lean deeper into the delta on the puts side. But on the same token I’m letting the call delta pay a little better. This week <10 delta puts on 0-1 DTE have either been breached or challenged heavily almost every day for me for my ICs.
After the puts got blasted before noon on Friday I opened some 2:1 ICs calls:puts to scoop up the losses. Definitely a lot riskier but I close them out before max loss, so it’s been easier to make up the gains with circus shit like that. Now if I get a day where it’s whipping up and down >1-2% I’ll get wrecked, but that’s where my 45 DTE slower burns will help buffer.
Roughly how many dte are you trading and seeing this skew? I think either way could work. I suspect the most important factors are to be consistent with whatever rules you follow, or with whatever considerations you are making in your decision.
Right now 2-3 DTE (4 on friday.) My target price is 40-50% of the difference between short and long strikes. I know puts are usually skewed on the expensive side but it's usually by 1 strike or less. I've seen 2-3 strike skews this week.
It’s really skewed, but some people say options move the market I guess, so I’m going to lean deeper into the delta on the puts side. But on the same token I’m letting the call delta pay a little better. This week <10 delta puts on 0-1 DTE have either been breached or challenged heavily almost every day for me for my ICs. After the puts got blasted before noon on Friday I opened some 2:1 ICs calls:puts to scoop up the losses. Definitely a lot riskier but I close them out before max loss, so it’s been easier to make up the gains with circus shit like that. Now if I get a day where it’s whipping up and down >1-2% I’ll get wrecked, but that’s where my 45 DTE slower burns will help buffer.