How to short the S&P using options? Day & swing puts

Discussion in 'Options' started by KCalhoun, Sep 11, 2021.

  1. KCalhoun

    KCalhoun

    At least my UVXY daytrading is looking good today :D

    If I had bought SPY puts for daytrading today would that have worked, too?
     
    #81     Sep 13, 2021


  2. Yes .......the 445 Put expiring today opened at $0.21. The current bid is $0.66.
     
    #82     Sep 13, 2021
    easymon1 likes this.
  3. taowave

    taowave

    You mean the current bid is .14...

    Ken,welcome to the world of Theta


     
    #83     Sep 13, 2021
    morganpbrown and KCalhoun like this.
  4. destriero

    destriero

    Go with the 30 delta series a month out. On puts you'll earn on vols (if mkt drops) and with calls you should earn on sticky as long as you're trading index. If you're getting flat within a day or two there won't be any significant greeks outside of delta. Don't hold the vol into macro releases and you should be fine.
     
    #84     Sep 13, 2021

  5. And it's gone

     
    #85     Sep 13, 2021
  6. destriero

    destriero

    I would recommend against dynamic-adjustments to the positions. IOW you're long an SPY call and it begins to move against you. Don't sell 50 shares to effect the small combo bc your original bull position will lose if it reverses towards your strike. Daytrading with singles is tough mostly bc of microstructure; you're not adept at it and will likely be lifting offers and open the trade with 4-5 cents in edge loss. With futures, at worst, you're in for a tick (edge loss).
     
    #86     Sep 13, 2021
    emulimu, Zwaen and KCalhoun like this.
  7. I almost spit out my water when I read

    "welcome to the world of Theta"​

    and saw the South Park video!

    F*cking options. I learned the hard way that I don't like to touch anything with < 10 DTE or anything deep OTM. I'm impressed that other people can trade that stuff productively.
     
    #87     Sep 13, 2021
    taowave likes this.
  8. taowave

    taowave

    Vegas line(not vega) went from even money for Ken trading an option to 138-1 against

    Nice job everyone

    Sorry Dustin:)

    In all seriousness,go find options that double ( or more) with a 1 ATR move..Seems like your style
     
    #88     Sep 13, 2021
    KCalhoun likes this.

    • Theta had very little to do with the 445 Puts declining from $0.66 to $0.14.
    • Most of the decline was due to the SPY going from about $444.81 to about $446.10 - up $1.29 in a very short period of time.
    • Delta was the big influence on the options in this case.
     
    #89     Sep 13, 2021
    SPX Options Trader likes this.
  9. taowave

    taowave

    Just out of curiousity,what was your Delta/Theta ratio on the open (448.64)??

    And yes,when it goes ITM with O DTE,it's all Delta





     
    #90     Sep 13, 2021