From Theory To Practice - March 18, 2021 - Why it's Hard to Make Money with Short Calls
In a market that is quite unpredictable and very random, it is difficult enough to correctly pick direction. And to make matters worse, when your strategy is a Short Call or Short Call Spread and the stock falls, you might be surprised at how difficult it still is to be profitable. As we see with our Short Call Spread in TSLA that is working pretty well so far, the reason why this is occurring is because of the relationship between short delta and short vega.