How to trade volatility next week?

Early bird gets the worm, there's always money to be made every business trading day -- if you sit on the sidelines, you're left with the leftover crap.

Hindsight trading warriors.

 

I think a strangle/straddle would be OK Monday morning. Below is a QQQ weekly OTM strangle paper trade - lets see how it does.

• QQQ at $114.28.
• QQQ weekly OTM strangle.
• Buy 115.00 Sept16, 2016 call ask at $0.52.
• Buy 113.00 Sept16, 2016 put ask at $0.80.
• Total debit $1.32.
• QQQ target at expiry greater than $116.50 OR less than $111.50.

 

LOL. Early bird gets the worm. And that applies to trading, specifically how?

I think you're mixing your metaphors there, buddy.

 

Futures red out of the gate. To be expected.

This thing with Hillary, depending on how big of deal the media makes of it, may throw a wrench in this weeks plan. I fully expected a nice bounce tomorrow....but now, the media will(could) dominate and spook the herd. Who knows. It might be a non-event. CNBC will probably ignore it.

Fun stuff.

 

What's that, IV of 18?... you'd better be quick to get that one then... I think IV for weekly will sit higher, 25-ish. that's only a straddle value of about 2.5% of underlying.

 

IV of about 23 now in SPX...

 

OK.... for whatever reason I'm getting normal quotes on my VXX weekly chains now. So I go back to my previously trading plan.

 

There ya go. In and out and my day is done.

Its too early to quit though....

 

• The 115c/113p QQQ strangle is bearing fruit already.
• QQQ at $116.32.
• Bid on the 115.00 call is $1.54

 

I bought the vxx 34.50 puts at 0,09 expiry friday.

Currently at 0,26.

Let's see how this plays out, fingers crossed.