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Managing of long puts/calls in vertical spreads
Thank you! That helped me. Usually I go by "feel" (and a few macro indicators), but what do people do to get a grasp of future price/vol movements? -
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Managing of long puts/calls in vertical spreads
I see. Thank you again. That would require a significantly sharp drop though. Extraordinary large losses could be avoided by buying a lower delta put instead of naked, I guess. In case of a black Swan event the lower delta put saves the portfolio. Maybe you can just buy units (an article I... -
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Managing of long puts/calls in vertical spreads
Thank you for clarifying. You mean the short puts will lose 10x value? The stop loss limit will be triggered. but your saying if the market drops sharply, the stop loss won't be executed because the drop happens to fast? Is this really the case even with very liquid and actively traded options... -
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Managing of long puts/calls in vertical spreads
Sorry, I don't understand? -
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Managing of long puts/calls in vertical spreads
Greetings, Usually I am trading vertical (credit) spreads and long iron condors (that will put me in the intermediate options trader's bracket I guess :) ). Usually 15-11 deltas. So, now for the question: I have a max loss (usually with a stop loss order) of 200% credits received and I only... -
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Skew you! :-D
What do you think of SPY, GLD, XLE, EEM and TLT as 5 ETFs that are not too much correlated? Any other ideas on Etfs with liquid options (and share prices > 50 USD) that are not too correlated to SPY? QQQ and IWM are too correlated and BITO f.e. is too cheap (commissions take up too much of the... -
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Skew you! :-D
Thank you. It is more important for iron condors and (atm) iron butterflies, isn't it? -
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Skew you! :-D
Thank you very much for taking the time to reply! That was very helpful! -
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Skew you! :-D
Yeah I try to keep correlation as low as possible by also trading GLD or TLT. But sure, SPY and QQQ and to some extend also IWM are strongly (0.6 to 0.7 I think) correlated. -
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Skew you! :-D
Hi guys and gals, I am trading options for 1–2 years now. Started out with Cash secured puts and covered calls. Nowadays, I am trading vertical credit spreads for the most part and sometimes iron condors. I am mostly focusing on uncorrelated ETFs/equities that have high IV and that I have a...