Let's Trade Options

Thanks a lot.

would love to see $15 or lower on this again

what go up must come down

https://sixfigureinvesting.com/2010/...ntent=shortVIX

Maybe after today's elections in Spain; more EU misery perhaps. And therefore another $8-9 drop in XIV.

Great site "tastytrade". I was not aware there is so much option potential. Thanks again. Should keep me up late nights now.

There is also options educational content and an options trade model utility at the affiliated site, dough.com.

SVXY put spreads are long vol, benefit from rising iv

Another good educational site. Thanks man. I like the video sessions. Well done

I also spent quite a bit of time churning through their videos. It takes a bit of watching to mine the nuggets, but after a while, it begins to sink in ... . Once the content gets repetitive (it eventually does), quit watching and start trading. Keep in mind that the TastyTrade approach is largely focused on nondirectionally biased "premium selling" setups -- short strangles, iron condors, short straddles ... .

I would start with Ryan and Beef's WDIS series; they have a pretty systematic approach.

The other series to plow through that are worth it are the Market Measures and Anatomy of a Trade segments.

Don't bother with Kate and Jenny's segments; they make things far more complicated than necessary and/or do setups for the advanced, highly capitalized trader. The more complicated the setup, the more complicated the "work out" tends to be. Stick to credit spreads, iron condors, short strangles/straddles for premium selling. Simpler is simply better ... .

Trade management and managing broken setups is absolutely key for premium selling; broken trades can f up your week, your month, your quarter ... . There are good segments on the mechanical management of broken short strangles; for broken IC's, eh ... not so much, but the same basic principles apply.

The vast majority of traders listed on the Dough follow page -- I would not bother with emulating their trades, but these are the ones worth watching for mere "ideas" or to get a grasp on what trades should be made in what environments:

Robyn: She's a fairly straight shooter, although she does some low IV environment stuff that I won't do (strictly a matter of taste, really). The thing she's got going for her is the fact that she posts why she did what she did with an explanation of why she did it. Hardly anyone else does that on a regular basis.
Kristi: Another enormously straight shooter, although she values probability of profit over the credit taken in on the front end. For example, she likes these 80% + POP setups and goes for a greater take of max profit potential to offset the smaller credit she takes in going wider.
Nick/Ryan: They're basically posting WDIS trades, and they're fairly run-of-the-mill, bread-and-butter setups. I prefer Ryan's trades over Nick's just because Tony puts kind of fruity stuff into Nick's head, and there's seems to be an effort to overly aggressively manage setups there (like I've never done that).

The rest of them do fruity crap or do too little trading to bother with (usually due to account size). I do get a kick out of Tony MX, but he does his share of weird stuff (like buying IC's around earnings -- not a high POP strat) or short-term plays that look for price to pin against a value in a particular underlying ... . This new trader, Fauzia -- can't figure out what the hell she's doing half the time, probably because she's largely doing IRA-constrained trades like synthetics, which are advanced methodologies that you have to know what the hell you're doing to play ... .

Going to look for a fill at $100 credit or above at tomorrow's NY open:

FAS Aug 18th 18/28.5 short strangle
Probably of Profit: 77%
P50: 81%
Max Profit: $127/contract (that's off hours; doubt I'm going to get that at open)
Max Loss/Buying Power Effect: Undefined/$232/contract (estimated in off hours)
Break Evens: 16.73/29.77

Notes: I don't like these 3x leveraged ETF's as an "investment tool," but when a $23 underlying seems ready, willing, and able to cough up $100+ credit for a 1 SD short strangle, well, I'm on board. I'll look to take it off at 50% max.

I'm not putting on anything short exposed to big underlying moves - the coming week I believe we will see continued volatility. The only "vulnerable" positions I have are a couple of broke wing UVXY put flys -Jul $11/15/18 (which is going to come off in fat profit Monday if UVXY cooperates)....and the same trade @ Dec expiry. Honestly, I had me head up me ass when I put on the latter - it went on for 25c credit & I will be looking to take it off in any bigger UVXY move north...

Another possibility, but with goofy off hours quotes to look at, you don't know what you're going to get at open:

EFA Aug 5th 48/56.5 short strangle
Probability of Profit: 75%
P50: 81%
Max Profit: $128/contract
Max Loss/Buying Power Effect: Undefined/$747/contract
Break Evens: 46.74/57.76

Notes: This an ETF meant to emulate global markets (US and Canada excluded), so you've got some skew here, which I've accommodated by moving the short call down to about the 78% probability OTM strike, which yields a fairly delta neutral setup.

Yeah, we've only got Friday's price action under out belt ... . Best to wait and see if there's more shit to distribute across the blades of the fan here. Lol.

You know, I have really gotten to be a pussy with the short stuff....the only thing I put on with some regularity is broke wing flies. This keeps the bp fat and I will use that to roll verticals into credit sometimes. However, when vol is high I still shop for SPY credit verts - looking at Aug calls, $213/217, for 80c, or something like that....

EWU, EWG, EFA, all mostly settled at LOD or near-LOD's ... . My feeling's that there's more "poop in the tube." The only thing that really prevented all the wheels from coming off the Euro-bus was the fact that the trading day ended ... . As with all things, we'll just have to see ... .

yeah, my gut is that we will see quite a bit more bearish moves in equities, further big moves in currencies.....it gets really hard to fathom potential pa in big "systemic risk" episodes like this, as the CB's could all be in the markets with heavy guns blazing....many traders will stay out of this kind of action....

At this point, it's almost like I can't help myself ... . Underlying meets my basic criteria; gotta pull the trigger. But it's always the one, undefined risk premium selling play that goes horribly awry that you always remember ... .

Hardest thing to do here is to wait to digest fully before jumping into the pool ... . Don't wanna cramp up, but the water looks sooo inviting ... .

... which is exactly when the Creature from the Dark Lagoon emerges from the deep and chomps the fuck out of your position ... .

I heard that. I remember. I have other ways to trade volatility that are safe and really quite a bit more lucrative. However, if I had the big accounts, I would be always looking to sell it way way out on the curve....something like Aug SPY $219 calls naked short, sell for 22c & let it die to <5c, do that once a month or so to keep the mistress in new shoes, etc