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atticus' "ship it" vol trading journal
- Thread starter atticus
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Quote from taowave:
Quick question for you guys
Trading AAPL..
would you rather be long the
10/12 -10/19 650 call calender for 6.00
or long the
10/19 650 680 1x2 call spread for 5.40
I was in the 1 x 2,but am wondering if I am better off in the calender
I could make arguments against both. I'd go with the Oct19/Nov 645 call calendar from mid 16s. Nov vols can't drop so it's a distribution play on Oct. Nearly free money from 16.5 to the buy (mid here).
You have no MOE in the two trades you mention. The calendar doesn't benefit from the report, so you're only gain is to gamma (pin to gamma strike). The backspread sees no prem in the 80C.
My view is AAPL goes out between 640 and 655 on 10/2.
Dont have the balls to short the straddle,nor do I want to sit glued to the screen and delta hedge.
The Oct/19 spread was long 1 650 call short 2 680 call...
Whats MOE?
thanks
T
Dont have the balls to short the straddle,nor do I want to sit glued to the screen and delta hedge.
The Oct/19 spread was long 1 650 call short 2 680 call...
Whats MOE?
thanks
T
Quote from atticus:
I could make arguments against both. I'd go with the Oct19/Nov 645 call calendar from mid 16s. Nov vols can't drop so it's a distribution play on Oct. Nearly free money from 16.5.
You have no MOE in the two trades you mention. The calendar doesn't benefit from the report, so you're only gain is to gamma (pin to gamma strike). The backspread sees no prem in the 80C.
Quote from atticus:
I could make arguments against both. I'd go with the Oct19/Nov 645 call calendar from mid 16s. Nov vols can't drop so it's a distribution play on Oct. Nearly free money from 16.5 to the buy (mid here).
You have no MOE in the two trades you mention. The calendar doesn't benefit from the report, so you're only gain is to gamma (pin to gamma strike). The backspread sees no prem in the 80C.
I like that calendar. Oct fly is good also.
Quote from taowave:
My view is AAPL goes out between 640 and 655 on 10/2.
Dont have the balls to short the straddle,nor do I want to sit glued to the screen and delta hedge.
The Oct/19 spread was long 1 650 call short 2 680 call...
Whats MOE?
thanks
T
Just trade a fly in Oct as opposed to a short straddle. Nix the ratio spread.
Quote from taowave:
My view is AAPL goes out between 640 and 655 on 10/2.
Dont have the balls to short the straddle,nor do I want to sit glued to the screen and delta hedge.
The Oct/19 spread was long 1 650 call short 2 680 call...
Whats MOE?
thanks
T
Margin of error. Just do the Oct19/Nov 645 calendar from 16.50-60
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