NFT Momentum | The 0 DTE option gammageddon, Managed Futures, jump risk, and NFT liquidity cascades
Pirates of Finance
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Trend-Selling Strategy: Negative Skew on a Daily Basis
If I run a slow-moving average trend-following system and expect to see convexity over a day, it's not going to react. If I buy a very long-term straddle and price moves today, the delta of that straddle isn't going to move much. But if I buy a straddle that expires in a week and price moves a lot today, you better believe the delta is going to move a lot. You still have the jump risk, but it's going to be very reactive. And so, again, this understanding options through this understanding trend- following through the lens of options will help with your strategy.
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