💡 SPX 0DTE Trading - Dec 14’22 Butterfly Strangle (Low risk/high reward) Dec 14’22 3925/3935/3945 Butterfly Put (Pin:Low on chart) Dec 14’22 4095/4105/4115 Butterfly Call (Pin:High on chart) Net Debit: $60 Max Profit: $940 Despite the “pump and dump” activity yesterday, positioning was bullish with calls being added overhead. There was +7% increase in SPX call...
💡 SPX 0DTE Trading - Nov 28’22 4025/4030 Bear Call Spread Credit Received: $95 The equity net short positioning is gone, but we are far from a meaningful net long. Skew has caught a bid (put demand > call demand) lately as participants have closed out equity shorts. The increase in skew suggests people are switching into hedging the downside via puts, instead of...
Premium is "ok" .60 is the mid price. You could PROB get filled for .65 or .70 I wish Vix was higher...
One chart illustrates the paradigm shift in risk assessment since the start of November. See the weekly GoNoGo Trend chart of option-adjusted corporate bond credit spreads which have now completely reversed trend conditions since Nov 1st, 2021 – from purple & pink “NoGo” bars through amber neutral and now the strongest blue “Go” bars as GoNoGo Oscillator broke out...
TSMC is a nice Iron Condor Setup looking back :) I like credit spreads here or can try naked calls to ride the channel up . Earnings upcoming so a better idea may be to sell puts and capture the IV crush after. Regardless, TSM has been in the 107-125 range since March and you can trade it as such until we see a bigger box breakout either up or down. I took...
My favorite bearish neutral trade for today. Losing only upside, I like the extreme high IVR values to play. Reasons to play this: 1/ After event, big selloff, high implied volatility. 2/ Extreme High Implied Volatility, good for credit strategies 3/ I can boost my original bearish vertical spread with 2 bottom legs at fib 0.786 to boosting my reward almost zero...
... for a 1.60 credit; scratch at 16.50 versus total setup value of 15.65 (i.e., currently up 16.50 - 15.65 = .85/$85). Notes: A delta under hedge in the first expiry in which the at-the-money short straddle is paying greater than 10% of the underlying. Net delta leans short.
... for a 3.00 debit; 3.50 ($350) realized profit; scratch at 14.40. Notes: Taking off the remaining risk in the February cycle. Net delta remains long, which I'm fine with, since exogenous risk lies to the call side. And while I took some nice profit here, I'm still slightly underwater relative to the total extrinsic left of 15.45 or so.
... for a .70 debit, 1.00 ($100 profit). Notes: A bit of subtractive delta balancing. Scratch at 14.10.
... to February 14th 62.5/63.5 short call vertical for fees only (i.e., the credit received was the same as the cost to close out the January spread, so it's a wash from that standpoint). Notes: As with the other spread I just extended duration on, this may need a little more time to work out and/or for me to reduce cost basis.
... for a .20 debit, 1.00 ($100) profit. Notes: Out of the put side in the January cycle, leaving some call side to manage running into expiry. Scratch at 19.80. I would note that /CL rank/implied isn't great here (4.3/26), so the obvious best case scenario is that I not have to roll out in this low volatility environment.
... for a 1.10 ($110 credit). Notes: A delta hedge with price pushing into the put side. Scratch for the whole shebang at 6.20.
... for a .10 ($10) debit on this rapid down move. Still have the October 28th (28 days) 1445/1455 short put vertical (the other half of the iron condor), as well as the November 25th (56 days) 1595/1605 short call vertical on, which I put on as a delta hedge. Scratch now at 2.60 (2.70 minus the .10 debit I paid to take off the call side).
Description: This weekly chart shows the long term correlation between the VIX (in orange) to the corporate bond yield spreads. The light blue line shows the BAML investment grade bond index yields a spread of 3.9% above the 10 year treasury. The white line shows the yield spread between investment grade BBB bonds and BB speculative grade. Widening credit...
This is a quick position i want to share using options. I plan on adding on bullish positions along the way. This is my style. Check it out. Thanks
XLB (Materials ETF) has been consolidating for weeks and looks like it's getting ready to make a move higher. With Squeezes on both the Weekly and Daily Chart this looks like a 'set it and forget it' type trade: In a perfect world, I'll be looking for a pullback tomorrow where I can pick up the 58/57 Put Credit Spread: Put Credit Spread Sell 58 Jan Monthly...
With the upmove experienced in the broader markets on Friday, coupled with S&P futures moving 30 handles higher in low volume, U.S. market holiday conditions, look to sell on strength on Tuesday NY open via SPY, QQQ, IWM, and/or DIA short call credit spreads. I have a wide variety of index ETF setups on at various expirations, but my primary focus will be on...