Doesn’t work. Sorry.

In my last post, I mentioned picking up theta over the weekend. Just because it happens , do not think that you can come into the market on Friday morning, sell options , and then capture the weekend theta decline. The market makers already know this and start adjusting the IV down to account for the weekend on Friday morning.

Now, if you already have a position, you are good.

Have a great weekend !

Well, I love weekends. Two days of time decay where I do not have to watch the market.

One of my trades Corning ( GLW ) , just went wiggy on me. I have a calendar spread on, and the IV of the long option just jumped. Don’t know why, but it has a large skew. “The larger the skew, the larger the move”. I don’t want to be around for the move.

The skew developed while I was sleeping, so I didn’t see it. I did not expect a skew to develop that large that quickly. Now, skew is in my favor, which is why I made money, since I entered the position when the skew was much flatter. If the skew had gone against me, my rules would have me close the trade.

I will run a spreadsheet over the weekend to get a better idea of the pricing. That is the second reason I love the weekend. I have time to upgrade my software.