re: Options Trading Thread

Got into the VXX puts. 50 delta

It’s got some juicy IV and percentile. But no, not playing with the bank related equities or options right now. I’m just a fortunate KBWB long term (bag) holder.

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I started at Ep1 last year and I'm on Ep180 or so now. Lots of really good information, and you can actually hear how he changes strategies over time (not selling premium during low IV). He's deep into the automated bot thing though, and I just have no interest...at least yet.

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I used to listen to his podcast on the way to work. Some I’ve listened to probably 5-6 times, and then I’d go back and re-listen when I could take notes. If there was something that didn’t click with me, I’d email him and ask questions.

As for the bots, I agree. While I like the idea of being as mechanical as possible, I don’t care to turn things over to the machines quite yet.

Ok boys, I'm ready to short some bank stocks.

I haven't traded options in 10 years. Lead me in the right direction. Already have my approved from Schwab to trade.

While that door may seemed to have closed, I saw several very large put buys at the end of last week on every bank you can think of when the news was coming out. This entire situation could last longer than a couple of days, these events typically have trickle effects. Time will tell, but the big, easy money has likely already been made.

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I'm ready to short some bank stocks.

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Can’t say whether or not you’d make money, depending on what options strategy you go with. But the train is already in motion… so implied volatility is spiking as measured by the VIX (up 17% as I type). So if you go long on puts, you’ll pay dearly for those now. As long as you’re directionally correct and have your timing right, you *might* make serious bank (as long as volatility stays on your side).

There is most definitely some major money to be made here… on both the long and short side of options, depending on underlying choice. Picking the correct strategy(s) and expiration is difficult now, because there’s massive confusion still.

Me, I’m really looking at short dated, short options strategies now (even more than usual), because I’m seeing the herd running scared - some are stampeding. With soaring IV and premiums, I can potentially make in a week what usually takes a month (as long as I stay far enough from the flame).

KRE Friday was a decent chance

Sold SCHW 40 weekly puts for $103 credit.

Bought it back for quick 16% gain.

Just a note on buying VXX puts: Buying 30 days till expiration is CRUCIAL. The 7 day calls are actually a losing proposition. Have to give it time for things to calm down.