5 ESSENTIAL ELEMENTS FOR PNL

When you hedge just about every moment, you wouldn't notice the entire pnl with the greater SD moves but you do capture the full pnl on the smaller sized intraday moves. Conversely, if You merely hedge when on a daily basis, you won't realize the complete pnl from your lesser intraday moves (like with your example) but you would probably in return

That is not the same as the pnl equalling the value compensated, rather the expected pnl of your system might be the same as the option benefit. $endgroup$Say you acquire an from the money possibility and afterwards the industry just dies. You then get noting but theta losses. They can incorporate up for the premium you paid out and misplaced.$begi