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WDIS: Top DogsAdding Futures Options to a Portfolio | Sep 17, 2018
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    WDIS: Top DogsAdding Futures Options to a PortfolioSep 17, 2018

    Howard and Tom quickly recap Howard's positions. Currently, he is slightly short delta with a decent theta number, but Tom notes that he is underutilizing his capital.

    Before jumping into more strategy deployment, Howard and Tom discuss downside protection and why we prefer to have static short delta as premium sellers.

    Static delta means that the delta will not change as the market moves, whereas options have dynamic delta that fluctuates as the price of the underlying or market goes up or down. Therefore, the static deltas afford us more protection in the case of a drastic selloff.

    After discussing this concept, the team moves on to enhancing some of Howard's existing positions as well as adding a few new positions including the use of futures options!

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