Greetings, I am somewhat of an option newbie. The SPY has sold off about 5% in the last two days. That is a rare occurrence and seems to happen every few years. In the past, this type of sell-off will usually get a bounce in a day or two and then might sell-off again. What are some good options strategies to use over the next couple weeks looking for the bounce? And then what might be a good strategy to use after the SPY trades higher for a couple days and I expect it to go to new lows? Thank you for any feedback.
Only a few people know the reason why but the big firms do not want you to know how it is manipulated and they have been good at shutting down any news sources that try to put the real info out there. I read somewhere the real reason for this sell off is because the Fe
Last time SPY down more than 5% in two days is Nov 1, 2011. Here is the complete list: Find the worst down in 2 days? 19971027 -8.1631 19980827 -5.2511 19980828 -5.0519 19980831 -7.4699 19981001 -5.8414 20000414 -7.0276 20010312 -7.1114 20010403 -5.3989 20010918 -5.4521 20010920 -5.1321 20020710 -6.0671 20020719 -6.6454 20020722 -6.3781 20020723 -5.6192 20020805 -5.6432 20080929 -7.7904 20081006 -6.3746 20081007 -9.3438 20081008 -6.8850 20081009 -9.3272 20081010 -9.2401 20081015 -11.1791 20081016 -6.0891 20081022 -8.2684 20081027 -8.4415 20081106 -9.5110 20081112 -7.3518 20081117 -6.2521 20081120 -13.3555 20081201 -7.7105 20081202 -5.3502 20090130 -5.2180 20090217 -5.3072 20090302 -6.6385 20090303 -5.2212 20090330 -5.1979 20110808 -6.6522 20110819 -5.8745 20110922 -6.0830 20111003 -5.2736 20111101 -5.1322 20150821 -5.1133
WOW they even shut down your post before you could tell us the reason. Hope your still alive :eek: As for the original question the options strategy is the easy part (OTM puts and calls to be aggressive of for less risk look at spreads) the difficulty is getting the direction right. No reason history should repeat itself.
The worst two day in Dow index since 1960 was down 26.17% on the black Monday Oct 19, 1987 following a Friday down 4.6%. The major reasons were said programming trading, market psychology and overvaluation. That sounds similar now. Will be fun to see what is going to happen next Monday.
"when vol is high short vega long gamma.. " see samuel1 haha. when vol is low long vega short gamma... basically use the calendar! trade calendars! go deeper into the calendar .. that is my thoughts... I am not going to get into the discussions about rational or irrational markets or conspiracy theories.. If you have strategy it should include this plus much more downside.. but my guess is it's uncertainty surrounding borrowing costs and the ancillary effects of monetary policy abroad reverbing back home
Anyone know what Deviation levels the SPY/SPX hit over these last few days during this huge drop / selloff ? Just wondering for Selling Credit spreads, if selling at strikes that were 3 SD OTM would still have you " Safe" in your position Thanks much
Your asking if you were selling otm credit spreads at 12 vix what would your risk look like right now..... Bad!!!! Chart a 190-185 credit spread for Sept expiration a see