Irma Bull/Bear Play

Discussion in 'Options' started by rollexus, Sep 8, 2017.

  1. rollexus

    rollexus

    Hello Everyone,

    Was wondering how some of you are looking into with Irma as a Bear play ie:

    Insurance Companies
    Banks

    Also, on the other side of the playing field what type of long positions you plan on taking ie:

    Home Builders


    Of course there is the cotton and orange juice commodities which ship has long sailed. Just wondering what type of crafty "speculative" plays are out there :)

    Kind Regards,

    Mike
     
  2. By the time something is front page all over the news it's probably too late to take advantage of any move (i.e. everything has already been "priced in"). If anything I would look at counter-moves here (fading the crowd)
     
  3. rollexus

    rollexus

    Makes total sense... e.g. orange should have been bought months ago... Please elaborate on "fading the crowd". I'm all ear (or eyes :))
     
  4. If something becomes overbought/oversold (which is a relative and highly subjective term) and is ALSO accompanied by an IV increase (fear) you could fade the move (short overbought and go long oversold stocks/etfs) and sell premium at the same time to benefit from an eventual IV contraction on top of the directional portion of your trade.