pnl Options

pnl Options

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$ During the "work case" you liquidate the portfolio at $t_1$ realising its PnL (allow me to simplify the notation a little)

Trader A has built some hefty PnL, In the meantime Trader B comes out with almost nothing at all and his missed out on volatility in the trading day which he could've profited off of experienced he been consistently hedging as opposed to just at the time each day.

Or does it actually not subject? I suggest equally can return different values so I have to talk to which value is more exact. $endgroup$

$begingroup$ Unsure this is a legitimate query! Gamma p/l is by definition the p/l as a consequence of recognized volatility becoming distinctive from implied.

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So if I acquire a choice and delta hedge then I earn money on gamma but drop on theta and both of these offset one another. Then how can I recover option value from delta hedging i.e. shouldn't my pnl be equal to the option value paid out?

And this is determined by the rebalancing frequency. But "anticipated P&L" refers to a median about all attainable rate paths. So There's not necessarily a contradiction below. $endgroup$

Por observación ocular. Observando los ojos de la persona que tenemos delante y comprendiendo los señales que nos emiten sus ojos, podemos averiguar cuál es el sistema representativo que se está utilizando en ese momento.

Nonetheless, the existence of considerable autocorrelation within the return process would trace that we can easily trade working with futures/linear merchandise on the intraday horizon which would most likely (after accounting for liquidity and theta) verify additional rewarding to trade as opposed to delta hedging technique.

I'm thinking about being aware of the PnL between $t_0$ and $t_2$ of becoming very long one unit of risky asset. Nonetheless I've two contradictory reasonings:

Este principio enfatiza la importancia de la flexibilidad. Si una estrategia o enfoque no está dando los resultados deseados, la PNL sugiere probar algo diferente en lugar de persistir en la misma dirección.

La PNL se puede definir como un conjunto de herramientas y técnicas que permiten a las personas comprender y modificar sus patrones de pensamiento, emociones y comportamientos. El término “Programación” se refiere a la idea de que nuestras experiencias y comportamientos son el resultado de programas mentales que hemos aprendido a lo largo de nuestra vida.

PnL unexplained is Therefore a metric that, when massive, may perhaps emphasize instances in which the danger variables pnl categorised for just a dangerous position are incomplete, or the versions utilized for sensitivities calculations are incorrect or inconsistent.[4]