re: Options Trading Thread

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I agree with you and think there will be a few days of strong upward retrace, so have been waiting to see market direction around 15-30 minutes after open and try to put in positions for call side at least 1% higher for SPX and 1.25% for NDX since the latter I am learning seems to swing a bit more quickly. Deltas are definitely low in this range but that hasnt always meant safety for me

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Our strategy playbooks are very similar. On 0DTE SPX, I sold various wide wing SPVs at 5ish delta at varying strikes this morning. Once the market bounced, I sold various wide wing SCVs at roughly 5 delta. I like this “legging into a synthetic strangle” strategy because the opposite side doesn’t affect buying power (equally weighted creates something of a neutral trade - so those short calls were “free”). When I make these trades, in this way, I keep in mind that implied vol tends to be overstated… especially after large market moves. And after the face smack from last week, I appreciate the extra premium this inflated VIX is providing.

And although there’s always risk, we can’t be wrong on both sides at the close. I explained this to a friend of mine, who I was mentoring, as Schrödinger's cat.

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Posted byMessageLSUTIGERS74Options Trading Thread by LSUTIGERS74I could see a temporary swing up to 4400 as it is only a few days since it dropped below but also could bounce off 4200 in coming days as that looks like the next resistance lower. However looking back at the last gap down around 8/1, it didn't fill gap.

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I went ahead and made a day trade out of it and got in at 20 exactly and sold at 24.50. So 20%+...I was going to hold but a good friend (who is an incredible trader) warned me of numbers coming out and I didn't want to be dependent on news (good or bad) while I was up that much.

I'm back to selling 0DTE spreads on SPX. The daily IV on the 0DTE has been elevated, making for some decent opportunities. I've been entering positions after lunch, and using basic technicals as support for the positions. It has worked well recently, and has returned a decent chunk.

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I've been entering positions after lunch, and using basic technicals as support for the positions. It has worked well recently, and has returned a decent chunk.

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Same here - only I’ve also been paying more attention to early session spikes and dives that seem more reactionary moves from the pre-market and futures than true directional indicators. Although accurately calculating short term/daily support and resistance levels is tricky, when the market spikes up (especially) right out of the gate, as it did this morning, I know from backtesting that less than 5% of the time has SPX gained an additional 1%. So I sold 0DTE SCVs at 4375 short call (around 4 delta). After the market began backing off around 11AM ET, I looked at 4250 as hard support and sold SPVs at 4245 short put (when it executed it was around 5 delta). Range for the day was 4333.15/4274.86.

I took an absolute beating one day last week. But by getting laser focused and taking advantage of the richer premiums from the elevated VIX this week, I’ve all but erased that nasty loss.

I hope all you guys went out in the green this week too.

Had to roll a few contracts out this morning on put side of NDX and SPX during the drop. Took what I thought were well below technical positions but it broke thru and filled a gap back from beginning of June on retrace. Hopefully got them set far enough down for tomorrow.

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Took what I thought were well below technical positions but it broke thru and filled a gap back from beginning of June on retrace. Hopefully got them set far enough down for tomorrow.

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Yesterday provided a safe/predictable trading range for us - but I was tied up and wasn't able to place trades yesterday. Today started off red, with the Reserve Bank of Australia spooking the Asian equity markets, and it got redder when the U.S. markets opened.

I wasn't able to get back to my screens until the technical carnage was well underway, or I would have likely been caught too, LSUTIGERS74. Late in the session, while the SPX was down to roughly 4225 and the VIX was elevated, I threw on some SPVs at 4195p expiring today. After a brief bounce, I also wanted to sell some SCVs at 4315c for 10/4 expiration... but didn't get an execution for the price I wanted.

Hopefully your rolls work out. That kind of violence usually provides a relief bounce early in the next session... but ya never know.

Yes. When I looked at the range after the close yesterday, I knew that I’d missed out on some “easy” money. Today I was just lucky that a prior commitment kept me away from the screen until late in the session.

At least the VIX is looking better now. And on another note, did you notice that the stock of our “mothership” was up today? CBOE closed at 157.24, just shy of its 52 week high of 158.71. For an investment account, I sold puts on it around the 150-152.50 level a few times, hoping to snag some shares for a longer term hold. Never hit, but I may keep trying.

Will be looking at getting some outs if we get a run up this morning.

Looking at some momentum plays as the market looks to making big swings.

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southernelite

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Have been thinking the same thing on momentum plays and just taking a few long shot calls and puts as I feel the market will make a strong short term swing in one direction and the far OTM plays could pay out

After reading so many articles about the explosion in options trading (especially SPX) over the past couple of years, I’m not sure why CBOE didn’t catch my attention before. I’ll be patient and hopefully establish at least a small investment position soon. Earnings are due on Nov. 3, before the open.

I put on some large SPX short option positions yesterday during the final hour. The short call side at 4315 has already printed. Now just keeping an eye on the short put side at 4190. This spike in the VIX is certainly helping us out on premiums.

Glad to hear that you were able to clear that SPX roll.