Flat skew

Time to take some money off the table, get out of some long calls.

 

Question:

What general expiration dates would you trade, short, intermediate or long dates, and why?

 

I have been off and on the site since you said last year that you were leaving the site forever because of personal issues, but I kept the faith and used Spock logic, and knew you would be back And here you are. I win!

 

I am not sure what the trade you’re proposing so it’s hard to suggest a structure

 

This: so the trade to do is to sell SPX skew and buy IWM/QQQ skew.

Thank you for your time.

 

Ah, that. It’s a play for implied volatility reset, so longer-dated options are better for it (your pnl is proportional to the gross vega of the four legs). The real question is what ratios and strikes, though

 

Thanks.

Can't ask you to do all the work. I will work out the ratios and strikes as my homework.