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Let's Trade Options

  • #12,381
  • Mar 17, 2016 10:25am Mar 17, 2016 10:25am
Quoting ZebraSquirl
Mmm. Not a very enthusiastic post-FOMC up move; the day's range was 26 points, which is actually below the 14 Period Daily ATR (which is above 27 points). I rolled all my March SPY setups out to April 1st earlier in the week or sometime post-Draghi, but I think I'm going to hand sit a bit longer before going all crazy and adding the put wings that I peeled off back in, particularly because VIX is now at its 2016 low -- a penny shy of $15 -- not exactly premium selling territory. And there's only 18 DTE for those April Fool's 196/200 short call verts,...
hi, are you referring to VIX credit spreads here? That's all I tend to use for volume pops but good to hear some other strategies
  • #12,382
  • Mar 17, 2016 2:10pm Mar 17, 2016 2:10pm
Quoting uksnowman
{quote} hi, are you referring to VIX credit spreads here? That's all I tend to use for volume pops but good to hear some other strategies
When I say "vol" I mean volatility, not volume. I use the CBOE VIX options for verts or singles. I use UVXY/SVXY for flys a lot. also always looking for cheap verts in those if I can fillem. I also use VXX for verts mostly.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #12,383
  • Mar 17, 2016 7:16pm Mar 17, 2016 7:16pm
Quoting Cecil Gee
{quote}[/color][/b] we got below 15.64 now looking for a drift lower to near 10 or even 11 may do it #, the VIX and S/P have the same % moves left to there maximum respected levels. If we are to drift on the VIX to near 10 then we may see smaller moves higher in S/P and DOW
Watching it like a hawk ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #12,384
  • Mar 17, 2016 7:27pm Mar 17, 2016 7:27pm
Quoting uksnowman
{quote} hi, are you referring to VIX credit spreads here? That's all I tend to use for volume pops but good to hear some other strategies
Well, kinda ... . I have worked VIX products with credit spreads, but the one setup I've got on now is in VXX and is best described as a synthetic or poor man's covered call ... .

The back month, long option expires in September and is at the 14 strike. Since the value of the long-dated option is mostly made up of intrinsic value, I'm using it as a "synthetic long" or "stock substitute" here, rather than buying VXX outright.

The front month, short option is now in May at the 20 strike. The general notion is to roll out the short call from time to time for duration and credit or roll it down toward current price (again for a credit) when it's decently profitable to do so. Throughout this process, you leave the long option alone.

You then take the whole mess off at some point when the total of credits collected for the short option + the current price of the long option exceeds what you paid for the entire setup as a whole.
Fireworks are fun ... as long as you don't blow your fingers off.
  • #12,385
  • Mar 17, 2016 7:58pm Mar 17, 2016 7:58pm
Quoting The Fool
{quote} give yourself time - I still think June could usher in good chances for big vol moves....
Hand-sitting in any event until post-March opex and for FOMC to be digested a bit ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #12,386
  • Mar 17, 2016 8:24pm Mar 17, 2016 8:24pm
nothing but CB green lights, all punch bowls filled, weak dollar, oil rallying ----- if bastards can't run equities up to new ath's now, I don't know when they could --- best chance for that is now til May, with a whole lotta dark clouds on the horizon past that. I am looking for pure long index action....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #12,387
  • Mar 17, 2016 8:36pm Mar 17, 2016 8:36pm
Quoting The Fool
nothing but CB green lights, all punch bowls filled, weak dollar, oil rallying ----- if bastards can't run equities up to new ath's now, I don't know when they could --- best chance for that is now til May, with a whole lotta dark clouds on the horizon past that. I am looking for pure long index action....
ı see you are expert with options trading.my englisng not good.and ı have no clue with option.what ı know is you have some patterns to trade with.you choose some schemes comes default with software or you create your own.my question is why this complex game.why not fx?green pips
  • #12,388
  • Mar 17, 2016 8:37pm Mar 17, 2016 8:37pm
Quoting The Fool
if bastards can't run equities up to new ath's now, I don't know when they could
ı full agree
  • #12,389
  • Mar 17, 2016 8:39pm Mar 17, 2016 8:39pm
Quoting The Fool
I use UVXY/SVXY for flys a lot. also always looking for cheap verts in those if I can fillem.
SVXY Apr $45/46 vert bought for 18c, in about 40% of maxP right now, I will hold out for SVXY to continue on >$50....maxP will be $1.00 - $0.18 - comms
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 2016-03-17_1833SVXY1.png Size: 87 KB
Click to Enlarge Name: 2016-03-17_1835SVXY2.png Size: 76 KB
"If The Fool persists in his Folly he will become wise." - William Blake
  • #12,390
  • Mar 17, 2016 8:45pm Mar 17, 2016 8:45pm
Quoting vasily
{quote} ı see you are expert with options trading.my englisng not good.and ı have no clue with option.what ı know is you have some patterns to trade with.you choose some schemes comes default with software or you create your own.my question is why this complex game.why not fx?green pips
for me personally, I can not trade leveraged fx in my IRA's - but I can do options trading in the IRA's so that is what I do. Otherwise, options offer a wide range of approaches to trading the markets as opposed to simple directional trading. Most options traders are trading with an eye on volatility, and volatility is easier to predict than direction, imho.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #12,391
  • Mar 17, 2016 8:57pm Mar 17, 2016 8:57pm
Quoting The Fool
{quote} for me personally, I can not trade leveraged fx in my IRA's - but I can do options trading in the IRA's so that is what I do. Otherwise, options offer a wide range of approaches to trading the markets as opposed to simple directional trading. Most options traders are trading with an eye on volatility, and volatility is easier to predict than direction, imho.
thanks and whats IRA please
  • #12,392
  • Mar 17, 2016 8:57pm Mar 17, 2016 8:57pm
Jun SVXY $50/60/70 call fly....looking to get out when/if SVXY grinds to $55 or better, maybe by mid-late Apr....paid a lot for it - $1.25, but it could return net $3.00 no problem
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 2016-03-17_1852svxy3.png Size: 78 KB
Click to Enlarge Name: 2016-03-17_1854svxy4.png Size: 89 KB
"If The Fool persists in his Folly he will become wise." - William Blake
  • #12,393
  • Mar 17, 2016 8:58pm Mar 17, 2016 8:58pm
individual retirement account
Quoting vasily
thanks and whats IRA please
"If The Fool persists in his Folly he will become wise." - William Blake
  • #12,394
  • Mar 17, 2016 9:02pm Mar 17, 2016 9:02pm
Quoting The Fool
individual retirement account {quote}
ı understand.ı think you are aperson that can learn certain things and become expert on it and ı think you work same way in your life
good luck and good pips to you
  • #12,395
  • Mar 17, 2016 9:41pm Mar 17, 2016 9:41pm
k, happy trades buddy

Quoting vasily
ı understand.ı think you are aperson that can learn certain things and become expert on it and ı think you work same way in your life good luck and good pips to you
"If The Fool persists in his Folly he will become wise." - William Blake
  • #12,396
  • Edited 9:53pm Mar 17, 2016 9:43pm | Edited 9:53pm
low vol means cheap calendars...IWM maybe pin $115 for Apr opex?................ditto SPY $212...
Attached Image (click to enlarge)
Click to Enlarge Name: 2016-03-17_1939iwm1.png Size: 65 KB
"If The Fool persists in his Folly he will become wise." - William Blake
  • #12,397
  • Mar 18, 2016 1:39am Mar 18, 2016 1:39am
Quoting The Fool
nothing but CB green lights, all punch bowls filled, weak dollar, oil rallying ----- if bastards can't run equities up to new ath's now, I don't know when they could --- best chance for that is now til May, with a whole lotta dark clouds on the horizon past that. I am looking for pure long index action....
tempted to leg in SPY & IWM long calls .... but the chart really looks like it wants to print a pullback....anyway I have loaded a SPY Apr $209/210 calls bull vert for 20c....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #12,398
  • Mar 18, 2016 3:57am Mar 18, 2016 3:57am
Attached Image (click to enlarge)
Click to Enlarge Name: 2016-03-18_0149UVXY.png Size: 158 KB
"If The Fool persists in his Folly he will become wise." - William Blake
  • #12,399
  • Mar 18, 2016 12:57pm Mar 18, 2016 12:57pm
Quoting The Fool
{quote} tempted to leg in SPY & IWM long calls .... but the chart really looks like it wants to print a pullback....anyway I have loaded a SPY Apr $209/210 calls bull vert for 20c....
maybe a steep selloff in crude would do it - canceled SPY call vert & will see what happens next week
"If The Fool persists in his Folly he will become wise." - William Blake
  • #12,400
  • Mar 18, 2016 2:43pm Mar 18, 2016 2:43pm
Quoting The Fool
{image}
UVXY will be the instrument i will look to trade once i decide to go long on it, its a year maker
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