Vol-trading for beginners

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

  1. destriero

    destriero

    I haven't been in TSLA for a few weeks as I have been babysitting a large synthetic SPX call and VX long. I am out of that now so I will focus more on single name positions. I would diagonalize it; go into Jan vol and short wings around it.
     
    #391     Jun 22, 2021
    .sigma, ITM_Latino and igr like this.
  2. deltaf0rce

    deltaf0rce

    37AB2CD6-97BF-4298-92E2-A1EBFF4FB299.jpeg
    Long TSLA stk from 597 (200ma)
     
    Last edited: Jul 4, 2021
    #392     Jul 4, 2021
    ITM_Latino likes this.
  3. horizon

    horizon

    Hey Dest,
    Would you please help to convert this trade to a fly? (I am using your UCO example that you posted months ago).
    Buy 50 shares XYZ at $52
    Short 1 call XYZ $51 , credit collect $4.0
    The reason because the account is an IRA and can not short a naked call.
     
    #393     Aug 15, 2021
  4. destriero

    destriero

    Sure, but realize you're be long a straddled backspread which behaves as a fly (in this example) with extra wing prot.

    Say you buy the 45/55 outside wings for 3.5. You would own the fly for a risk of $0.7 (4.3 cr). Short the call for 4.9, implied put is 2.9, less wings at 3.5. I am treating this as a one lot bc the wing purchase is double what is needed if you're trading a mini straddle.

    You're in a half straddle + one lot wings, or straddled long backspreads. It's best to go further out on wings if trading the mini to reduce the wing impact on the mini's credit.
     
    #394     Aug 17, 2021
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  5. zghorner

    zghorner

    Read this thread today and I really appreciate you doing this, thanks.
     
    #395     Aug 21, 2021
  6. themickey

    themickey

    I discovered this little beast when reading a newspaper article about scout bikes for the military....
    Thought to post it here as we were discussing e-bikes a while back.
    https://stealthelectricbikes.com/stealth-b-52/
     
    #396     Nov 6, 2021