The Ratio Put Spread That Has Boomed For Mega tech and SPY

Discussion in 'Options' started by CML_Ophir, Aug 13, 2018.

  1. What about using a mental stop loss to prevent big drawdowns: would the strategy still work alright, or must must it be held to expiration?
     
    #11     Aug 13, 2018
  2. destriero

    destriero


    He needs an editor.
     
    #12     Aug 13, 2018
  3. TheBigShort

    TheBigShort

    Here is the trade CML dude is referring to. This is the

    Long delta 40, short 2x delta 30, short 1 delta 22, long 2x delta 15.
    I do not see anything special about this.
    If not delta hedged this is a directional trade, with a brutal risk reward. Even if you wanted to consider this as a short vol/skew trade, your gamma/vega ratio is a little high.....
    Trade the underlying if you want delta.
    cml.PNG cml.PNG
     
    #13     Aug 13, 2018
  4. harryp

    harryp

    Basically a commentary on 2010-2019 market.
     
    #14     Aug 13, 2018
    TheBigShort likes this.