Long Spy, short vol: feedback welcome

Discussion in 'Options' started by deltaf0rce, Nov 6, 2020.

  1. deltaf0rce


    In the simulator;

    Rationale: triangle about to break out to 380-390

    Long stock; due to negative delta at inception - should I gamma scalp?

    last point; my buddy is a pro at a bulge, told me not to cap upside on this trade.
  2. guru


    How are you shorting vol?
  3. expiated


    I trade purely on updated technical analysis that answers the question: Is price rising or falling? And according to my diagnosis, SPY is currently at a decision point or level. So if it drops below 350, I'm bearish. However, if it climbs back above 351 and stays there, I'm bullish. But, at this point, I have to wait to see which direction it takes.
  4. deltaf0rce


    Selling the back month at the money ..
  5. taowave


    Fast move up is your friend..Sitting still,drifting lower is your enemy...You are calling for a 10% up move,short 100 diagnols(-2.5 delta) and long 437 shares againt it??? Thats not the play I would make if I was as bullish as you

    .sigma likes this.
  6. deltaf0rce


    The Greeks are in my favor but I’m certainly open to ideas. The payoff looks like selling a fly except I am selling vol. I also run the risk of getting assigned here.

    An up and out diagonal may be better.
  7. Adam777


    IV(30) = HV(30) so why sell vol? Maybe something directional?
  8. horizon


    Could you please tell me your break even point?
  9. taowave


    You have to make an assumption on how the diaganol trades with a move...

    Start with what,as in what range, causes the pain on the diaganol
    horizon likes this.
  10. deltaf0rce


    To anyone wondering; not great!

    when the spy comes back in to touch the triangle I will throw on an up and out and see where that goes.
    #10     Nov 9, 2020
    horizon likes this.