June 2012
Intermediate to advanced
272 pages
4h 37m
English
Managing a generalized SynA often requires more attention and more frequent adjustments. The management rules are similar to those of the CSynA, except that, when leveraging theta, using spreads instead of naked options is usually a good idea. This chapter also includes some comments on combining risk exposures to stabilize certain hedged SynA’s.
Protecting cost basis is again the most important aspect of SynA management. If you are trading Level 3 options and above, you probably have your own views about risk management. Instead of talking about rules beyond that related to cost basis, I present guidelines that have been useful to me. I also walk through some scenarios ...
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