Efficient Long Vol Strategies for a 1YR Timeframe: Your Thoughts?

Discussion in 'Index Futures' started by killATwill, Jan 4, 2024.

  1. Cabin1111

    Cabin1111

    Just a mistake dude...No worries. I was scanning the tread and you look at the title of the thread. I did look up one of the indexes and saw volatility...But forgot.

    In 95-98% of society's vocabulary, vol does stand for volume. It's used in business. Ask any med student (or former)..."what is the total lung capacity of the patient"?

    When you see vol. you know what they are thinking...
     
    #11     Jan 4, 2024
  2. destriero

    destriero

    I am a former med student so sure, I would not think about volatility in that context as it completely lacks context. In option trading, 95% of the time it relates to volatility, especially when stated in the post. 5% of the time volume relates to fill quality, microstructure.

    mg/m^2
     
    #12     Jan 4, 2024
  3. destriero

    destriero

    Cabin, did you read this before replying? I just thought it comical and in line with the relative quality of replies on this site.
     
    #13     Jan 4, 2024
  4. Cabin1111

    Cabin1111

    Yeah, I did. It was later at night and I didn't get much sleep the night before.

    So often we just scan threads...Gleaning what we can.

    What struck me was more the idea of using margin for doing (any type of) leaps!!

    That woke me up. Show some grace dude, I messed up...
     
    #14     Jan 4, 2024
  5. destriero

    destriero


    OK, so what structure would you recommend for the OP to effect a long vol position and why?
     
    #15     Jan 4, 2024
  6. Cabin1111

    Cabin1111

    Dude, I feel like you're baiting me. I'll play along...

    Don't use margin...Too costly. We are talking about volatility, yes?

    Choose VIX (or still better yet, QQQ or SPY)...Any disaster will increase vol. Use a put for Jan 31 up to Mar 15, 2024 for direction.

    Thinking of the election, middle east, Apple/Amazon faltering, Russia issues, debt, inflation, ect.

    I wouldn't make the trade (risk adverse)...

    If I would gamble on something (at this time), I would do a put on RILY or some micro fund ETF, that would he hard hit by higher interest rates...

    But, I'm not a trader...Just an investor.
     
    #16     Jan 4, 2024
  7. destriero

    destriero

    March vols are 13. Jan vols are 18. Vol as synthetic time. You're paying 500 beeps over near-term expirations due to election and vega position.
     
    #17     Jan 4, 2024
    nbbo likes this.