Vol-trading for beginners

Discussion in 'Journals' started by destriero, Feb 14, 2021.

  1. destriero

    destriero

    I don't think we'll see 15,000 NDX or 4500 SPX this year. The rotation into cyclicals is to be expected. I really only see GOOGL as a buy here. It's the only long-term equity position that I own.

    I would actively short a touch of 3250 AMZN.
     
    #171     Mar 6, 2021
  2. Hmm. I don't want to comment on the level of spooz (*) but i do think we gonna have more of these explosive rallies

    (*) though I am tempted to do an over/under vs current level - the winner pays for the gun range tickets in Vegas?
     
    #172     Mar 6, 2021
    .sigma likes this.
  3. destriero

    destriero


    lol OU on current after we drop 200 spooz? The bet was 4500 for the year. :)
     
    #173     Mar 7, 2021
  4. deltaf0rce

    deltaf0rce

    Preference for straddle, diagonal or backspread? Was thinking of a put backspread 3850 June, about 4.90 CR to put on. Vol 24
     
    #174     Mar 7, 2021
  5. Why not?

    With record earnings, low interest rates, stimulus and an economy re-opening, I can't see this pullback being nothing but washing out weak hands. Unless there's any undesirable developments with Covid or another black swan, a 10-20% annual return would be reasonable.

    The only question I have is whether the current pullback has caused enough pain for it to be over. NDX almost. S&P not sure.
     
    #175     Mar 7, 2021
  6. destriero

    destriero

    Cool story, Bro.
     
    #176     Mar 7, 2021
    igr, deltaf0rce and cesfx like this.
  7. Uh, ok
     
    #177     Mar 7, 2021
  8. lol! Mkay, my back of the envelope price for 4500 one-touch is even odds (you never gave me a quote) which feels fair

    Same notional, i.e. gun range tickets in LV? I always wanted to go, just never had a jungle guide :)
     
    #178     Mar 7, 2021
  9. horizon

    horizon

    Hi Destriero,
    When will you exit this trade if it wins? Like after gain 50% then you get out or you will try for the maximum gain? Also, do you manage it if it starts going south? Or cut loss and open a new one? And if cut loss, do you cut loss after 50% loss?
     
    #179     Mar 7, 2021
  10. destriero

    destriero


    I haven't looked at it. I should probably cut it here. I only traded it for illustration. I wasn't trading an opinion on UCO; I was showing how to start trading (URO) positions small. I can't tell ppl when to take profits or cut risk. I suppose it made more sense than stating "buy 50 XYZ and short one call."

    IMO, I cover all positions when I have earned more than 4X the vega position (on the day). Delta is another matter and beyond the scope of this thread.
     
    #180     Mar 7, 2021
    Atikon and horizon like this.