This Week @MidwayTrades for the Week Ending December 8, 2023: Theta and Big Events

9 months ago
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Finance Stock Market options trading calendar trade_review volatility

Dec 12, 2023

PROCESS AND PUBLISH

This Week @MidwayTrades for the Week Ending December 8, 2023: Theta and Big Events
The goal of this week is to show what happens to the greeks (especially theta) as a big event (or set of events in this case) occur shortly before the contracts expire. On paper, the trade should be quite profitable, but reality is different due to the pending events. This is a really important lesson for newer (and maybe not so newer) traders so I'm glad I was able to show this phenomenon. Mathematical pricing models can't account for real world events so situational awareness is needed to avoid getting squashed. I hope this helps some folks out there.

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