Was using this account originally for running high theta SPY strangles with around 8 delta legs, but found after a while and looking over my history that i tend to lose money after the first re-center (delta hedging rather than recentering seemed to work better though). Anyways, after the first recenter since im working with around 10 contracts, gamma tends to get unmanageable and profit starts to leak on even slight price moves.
So, I've decided to use this account primarily for a wheel (180k size) and keep my other account with around 60k for the multi-leg options setups that may come around (purely an account to harvest IV)
Anyone have some experience with wheeling and hedging? My main concern is not getting assigned but getting assigned and price then blowing past my cost basis which would result in selling CCs below that cost basis. Do yall try to mitigate this risk at all?
Recently converted my main 180k account to a fully wheel strategy account
byu/I_HopeThat_WasFart inoptions
Posted by I_HopeThat_WasFart
1 Comment
Yeah, short vol strategies work in a bull run. There isn’t a whole lot you can do to protect your downside. I suppose you can be picky about when you enter and not take on tail risk. But there is no protection for Liberation Day style event.