Recent content by jimmyjazz

I'm keeping an eye on SPY with a $400 protective put, in one case almost a month out (07/16/2021) and in the other case almost a year out (06/17/2022). Over the first 3 days, the short term put has lost less value ($), although percentage-wise it is way down compared to the long-dated option...

Thanks! I'll check it out.

Hi . . . I haven't been trading for a few years, as I've been focused on launching and building up a startup company. I don't anticipate I'll get back into day or swing trading any time soon. Startups are less risky (ha). That said, I would like to learn more about historically effective...

That said, almost every "home run" trade I've tried is a loser, including hedging. I am much more conservative these days.

I hedged long calls in SVXY with equal # long puts the day it crashed in February. I didn't go for equal original delta, just the delta at the time I hedged. Once trading reopened the calls were of course worthless, but I netted a nice profit on the overall trade with the puts. I can't...

Why did IV spike?

Yes, it's not clear if the concept being floated is contrarian (market says "buy", then "sell") or if there is a fundamental misunderstanding of the function of a long call versus a long put.

I think it's mathematically possible that averages calculated on closing prices for the period of interest could still lead to intra-period tops/bottoms that exceed what had come before. I'm not gonna count on it (or go hunting for corroboration).

I suppose it might be possible to use compicated indicators to improve trades, but I haven't seen the evidence. For a while I liked TSI because it seemingly reduced drag by essentially taking the derivative of an integral (or was it the other way around? I'd have to go back and study it) but...

LOL . . . so those times when you get a quick fill aren't as good as they seemed?

Can anyone recommend books or articles that delve into the theory behind backspreads? I am specifically looking to learn about how they price & perform against simple long option strategies, as well as the tradeoffs involved in selecting strikes, ratios, and expiry. Thanks.

Still struggling to find any solutions . . . I can chart IV on Schwab's Streetsmart Edge platform, but it is seemingly limited to daily data. Surely some platform out there offers intraday IV charting for the retail trader?

I'd watch the moving averages and wait for a crossover before doing anything. It ain't perfect but in my view you're betting going long with options late than early. A spread will mitigate much of that time decay risk.