What did you all get out of today's presentation? I'll make time to watch it again when it's uploaded, but the point that stood out to me was to really take the time and effort to watch one trade and see what the greeks did to help or hurt each component. So, I'm assuming that it would be helpful for me to take apart each position in spreads or singles to monitor how the greeks changed both individually and how that affected the position as a whole.
Frank mentioned that each day he knows why his position was affected - delta, Vega, gamma, or changes to theta and what it did to the P&L and shape of his curve. I look at the snapshot and risk graph (and project out 7 days) but I haven't broken down each individual option or even the spreads to understand which side got hit and why.
The continuous theme I see with the guys that are successful is that they are continuously students of the game and documenting each aspect of their trades. My daily screenshots look like K5 stuff and these guys are building PhD dissertations...
When I started options trading I was taught that greeks were for freekies. When I started losing money without knowing why I became interested again in the greeks. It was this painful experience that made me "sense" gama and vega risk in a different way. Once you observe your positions with a reasonable risk graph (OptionVue/ONE) and/or do manual backtesting with this software, it will take you only a few hundreds of trades to "sense & feel" the greeks and, more importantly, get a grasp on how they affect your PnL. For me it was a good lesson to build an Excel sheet with my positions, the corresponding greeks and the PnL. And when the market opened and I got some stable values for price movements and volatility, I returned to the spread sheet and entered my own "predicted" values for the option value and the greeks. And then I opened the options trading platform to figure out the real numbers. After a few years doing that, I developed a good sense for how a complex portfolio's risk graph morphs in response to market conditions. The effort to develop a gut feeling for how market moves affected my positions and whether this could be remediated by manipulating delta, gama or vega paid off in the long run.