Income will not be consistent, so 'monthly income' from these sorts of systems is a misnomer. You are putting on a trade that will either profit or lose. Putting them on indiscriminately as a monthly trade is probably a loser overall IMO.
And any thoughts on modifying / changing the calendar if the market moves against the calendar ?
Yeahbutnobutyeahbutno. You can try to dynamically hedge the deltas, but watch vega and contest costs with the morphs. Easier with other delta neutral strategies IMO.
Income will not be consistent, so 'monthly income' from these sorts of systems is a misnomer. You are putting on a trade that will either profit or lose. Putting them on indiscriminately as a monthly trade is probably a loser overall IMO.
Yeahbutnobutyeahbutno. You can try to dynamically hedge the deltas, but watch vega and contest costs with the morphs. Easier with other delta neutral strategies IMO.
Thanks for reply - It leads to another query - On average, What is the most efficient Delta Neutral income strategy?
ie Straddles, Strangles, - with/without Delta Hedging - on Indices or Futures ?
Or maybe someone can point to a previous discussion on the topic..