Never in my lifetime have I thought that I would see Implied Vols of 60, 70, 80% on the Dow!!!
The temptation is to sell premium, but the black swan moves are all too likely right now.
:couch
Not to mention those on Ford and GM!Never in my lifetime have I thought that I would see Implied Vols of 60, 70, 80% on the Dow!!!
The temptation is to sell premium, but the black swan moves are all too likely right now.
:couch
The temptation is to sell premium, but the black swan moves are all too likely right now.
:couch
Those black swans are looking more & more like the white ones, hard to tell the difference anymore.
Not to mention those on Ford and GM!
LOL
It has been unbelievable to watch the vols, especially on Ford. 200 +%!!!!
I also trade Potash and that has gone through the roof!!!
Still plenty of more fun to be had
Hi Everyone,
It been mentioned that it may be a good time to sell premium due to extreme volatility, is an appropriate method to short a strangle on the index or could this be regarded as too high risk in these conditions, if this is the case what would be a strategy to take advantage of high IV without being exposed to total loss.
BTW just noticed the Dow Futures are down another 400 points, looks like the excitement is to continue.
Cutz.
Hi Everyone,
It been mentioned that it may be a good time to sell premium due to extreme volatility, is an appropriate method to short a strangle on the index or could this be regarded as too high risk in these conditions, if this is the case what would be a strategy to take advantage of high IV without being exposed to total loss.
BTW just noticed the Dow Futures are down another 400 points, looks like the excitement is to continue.
Cutz.
Hmmm... that's the theory behind selling IV, however a short strangle is up there on the high risk scale, espacially in this climate. You might want to look at credit spreads, butterflys or condors to cap some of the risk.
LOL
Just write some oppies then delta hedge. And pray volatility goes down
Hi all,
What do u guys recommend as far as software goes for working out hedging strategies.
Please disregard, the answer was right under my nose
Yes Cutz, Hoadley is a good one.Hoadley options strategy evaluation tool
Thanks Sails,
I have been playing around with the free version and experimenting with delta hedging on stock options but I was curious to know if XJO options are generally delta hedged using SPI futures, this does not appear practical due to the differing point specs.
Also do index options private traders prefer to use SPI options due to the direct relationship with the SPI and is the SPI option market highly liquid. I spoke to a MF global about trading SPI options but they said that orders are handled by their brokers over the phone, i.e. not via a platform and when I checked out the ASX website there doesn’t seem to be much going on in the way of SPI options, what am I missing?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?