Prop DashBord

Prop Dash: Hedging Strategy Monitoring Tool

Prop Dash is an essential tool for traders looking to optimize their hedging strategies. By providing real-time position monitoring, market movement indicators, and detailed analysis of derivative Greeks, Prop Dash enables traders to make informed decisions and maximize their returns.

The comprehensive Vanna Prop Dashboard facilitates efficient strategy management, ensuring traders can effectively implement and adjust their strategies based on real-time data and analytics.

Example Strategy: Theta Decay

• Objective: To capitalize on the premium earned from Theta decay (time decay) of options.

  Strategy Setup:

  1. Position: Sell out-of-the-money call and put options.

  2. Market Movement: The market is expected to stay within a certain range.

  3. Derivative Greeks:

     • Delta: Neutral (approximately zero) to minimize directional risk.

     • Theta: High, to maximize earnings from time decay.

     • Gamma: Low, to reduce the risk of significant Delta changes.

  Execution Using Prop Dash:

  1. Monitor Real-Time Positions: Prop Dash fetches and displays the current positions of the sold options.

  2. Track Market Movements: The tool provides alerts if the underlying asset's price approaches the strike prices of the sold options.

  3. Analyze Greeks:

     • Delta: Ensures the position remains neutral.

     • Theta: Calculates the overnight premium earned from time decay, showing expected profits.

     • Gamma: Monitors the rate of Delta changes, ensuring the strategy remains low-risk.

  Profit Calculation: Prop Dash shows the overnight premium earned due to Theta decay, which might look like this:

  • Theta: $100 per day

  • Days to Expiry: 10 days

  • Total Premium Earned: $1000 (if the price of the underlying asset remains stable).