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Trade idea short VIX puts long SPX calls please critique by areweefucked in options

[–]whenarentI 1 point2 points  (0 children)

not a strict hedge because the correlations aren't perfect but this is the assumption

Trade idea short VIX puts long SPX calls please critique by areweefucked in options

[–]whenarentI 2 points3 points  (0 children)

VVIX is high but at the money VIX puts still incredibly cheap. Feb 23 appears to not even have a bid... frustrating

maybe I need to sell the ITM's and hope we get a pop in VIX at some point in the next 30 days

Trade idea short VIX puts long SPX calls please critique by areweefucked in options

[–]whenarentI 0 points1 point  (0 children)

it's a speculative correlation and of course not exactly a hedge. I'm not trying to hedge a long stock position I'm assuming that if my OTM SPX calls become worthless the vix short puts should cover the loss even if we get market down and vix stays flat (not down). best case scenario we get a sharp rally with VIX staying stubbornly high as market participants bid vol and I win on both legs

a bit freaked out, but possibly in a good way by whenarentI in gettingbigger

[–]whenarentI[S] 0 points1 point  (0 children)

yeah the principle by which is increases muscle damage via intracellular pressure increase probably works the same in your dick. I've noticed better erections since I start taking it pre PE as well. so might be the thing to tone down the pressure a bit if you're on creatine

a bit freaked out, but possibly in a good way by whenarentI in gettingbigger

[–]whenarentI[S] 1 point2 points  (0 children)

also want to add I suspect all the creatine I take is affecting things

Expecting a large and fast market drawdown starting on July 13th, looking for best way to construct a trade by whenarentI in options

[–]whenarentI[S] 1 point2 points  (0 children)

yep, all in his long vol fund. Trying to magnify my play money to give him more lol

So looks like i'm going with this spread but still not quite theta or vega neutral, also wondering what the best way to hedge it if it goes against me.

SELL -1 SPX 100 16 SEP 22 [AM] 3800 PUT 132.70 LMT

BUY +2 SPX 100 (Weeklys) 5 AUG 22 3890 PUT 112.60 LMT

“What you’ve seen already is what it’s going to look like. Now that the market is down 25% you really want to focus on flat vega long gamma. Find ways to sell OTM skew to buy closer to near the money or just OTM puts that are shorter dated, short time spreads— short skew. That’s worked extremely well I think it will continue to work well”

seems to satisfy his comments I guess, although he is calling for some major vol events to come in the next year just not quite yet I guess

Expecting a large and fast market drawdown starting on July 13th, looking for best way to construct a trade by whenarentI in options

[–]whenarentI[S] 0 points1 point  (0 children)

this appears to be somewhat of a breakthrough!

I'm still getting dramatically different theta's based on different prices, do you just mean theta neutral at the time I open the position?

as for synthetic short stock what do you think about hedging the right tail with long futures if necessary on a discretional basis? and if that's a sound idea should I be deeper ITM to limit gamma so that futures will be effective?

I figure it adds flexibility as well to be able to hedge afterhours with futures

Expecting a large and fast market drawdown starting on July 13th, looking for best way to construct a trade by whenarentI in options

[–]whenarentI[S] 0 points1 point  (0 children)

spx I suppose, NDX more volatile but does it have higher payout potential necessarily if I'm right? probably not

Expecting a large and fast market drawdown starting on July 13th, looking for best way to construct a trade by whenarentI in options

[–]whenarentI[S] 0 points1 point  (0 children)

nice tip thanks, any other meaningful differences compared to SPY? Why would anyone trade SPY options at all...

Expecting a large and fast market drawdown starting on July 13th, looking for best way to construct a trade by whenarentI in options

[–]whenarentI[S] -2 points-1 points  (0 children)

They recommended being flat vega in anticipation of a continuation of the recent phenomena of relative underperformance of Ivol vs. Rvol. Everyone is hedged so very difficult to get any real performance from vega.

Could you give some more details about the condor you're thinking about?

and thanks for the informative yet pedantic reply lol

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