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1/18/19: Portfolio Analysis - Delta Diversification by Time

From Theory To Practice

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In today’s portfolio analysis, we look to add some new positions in the March cycle, and by doing so, we spend a few minutes talking about how having positions in different cycles effectively offers you “delta diversification by time”. This is simply because deltas in the front month will move with much more speed and potency than deltas in the back month. To showcase this idea specifically, we add Short Puts in both NKE and SMH, and we consider a Long Call Diagonal in GLD.

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