Switching from trading stocks...to options....will make you go from (just) Calhoun....to... Caaaaaaaaal-- -Hooooooooun, One is TNT, while the other can be plutonium. A profound difference in charges and effects and workings. But, of course,...the Devil is in the details, understanding, layout and execution of each, and every, options trade. Everything, in life, can be a double-edged sword.
I was leaning long delta (short vol) in vol and while it was a small gain, but my vol came in a lot. I can't second guess the entry just bc the thing ran against me and I could have covered a bit better. The goal is to be short vol when the signal is bullish and long vol when bearish. Hard deltas against vol when I am wrong but too big to get out. Verts or singles as hedges at inception. I should have structured some DOTM bear verticals against my vol, but I didn't like buying the vol-line into the weekend knowing we'd print small ranges into the holiday and after. I will use futures to trade around a large vol-edge or contracts (000s) if microstructure (getting out of size) would result in a stupid edge loss. IOW, if I am short vol and my trigger gets short, but the position remains viable, then I will get aggressive in NQ futures.
Thanks for the thorough explanation. Unfortunately, volatility trading is above my current scope of expertise. But I do appreciate it nevertheless and perhaps one day I will understand some of what you volatility traders do. (Taking directional trades with comprehensive trade management is the road I'm on.)
Thx re bear nudge short SPX Saturday, I went a bit more aggro UVXY TZA day and swings and having a green week #thxdest Here's my et follow list
$AFRM reports tonight. vol crush I bet. idea... Sell the $90 puts/calls. $12.50 credit. Maybe buy a $105 call on the upside for insurance in case the market gets stupid, but I think if it does anything it'll drop. $80 put is $2, probably get it cheaper if this thing starts climbing into the close.