etfmsolutions: Delta Neutral Update....12.03.18

Monday, December 3, 2018

Delta Neutral Update....12.03.18

Well, the DN model has certainly lagged the past few days...and why is that? If you understand the mechanics of the DN strategy it should be no mystery. What's happened is that we've seen a couple recent blow out days that have exceeded our limit stops so orders never got filled on either side. This is the price we pay for DN protection when the market decides to exceed those limit stop values to the downside/ Still, we're in this for the long run and risk management is always job #1 with us.
Today's news was that even some of the "smartest guys in the room" have cratered badly.
Should've called Bob.

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