How do hedge Theta?

horacioaliaga · April 30th, 2007, 7:06 pm

And in case you can not, WHY?

rimaephosie · April 30th, 2007, 9:36 pm

If someone is able to hedge his theta, it could be very intersting ! !

ImamicPH · April 30th, 2007, 9:50 pm

Can you hedge with a risk-free interest earner?

pcg · May 2nd, 2007, 5:28 am

Are there not better things to do than hedge theta ? Why not trade on gamma ?

BetaExoticBets · May 2nd, 2007, 8:28 am

I will take your (long) theta if you want. You can keep the (short) gamma. Just send me the ticket!

pcg · May 3rd, 2007, 4:28 am

well when u are talking of hedging theta , u refer to a short one right ? Or am I mistaken ?

EnergyQuant · May 3rd, 2007, 9:45 am

Oh, for fuck's sake - with the exception of some very specific cases, if you are short theta you are long gamma, and vice-versa.If you don't like your theta position, buy or sell some options. It will change, I promise you.Buy a book - actually don't, but do come and trade options in my market.EQ