How to short the S&P using options? Day & swing puts

[SPX Options Trader]

You have not responded

Are you inferring that since I am already in a losing move, there is no way an option at this point in time, can protect me from more loss, or give me profits outside of that move?

I don't give out Trade-specific advice, much less in something, futures, that I don't understand.
That's something only that trader should decide on, and execute on, and think on.

I'm a simple basic directional option buyer, puts and calls. I don't sell them or use them as hedges and insurance.
So I can't enlighten you on that department, or predicament, you're stuck on.
You seem to be in a lot of losing trades, looking for a Plan B, salvage plan.

 

[destriero]

I don't give out Trade-specific advice, much less in something, futures, that I don't understand.
That's something only that trader should decide on, and execute on, and think on.

I'm a simple basic directional option buyer, puts and calls. I don't sell them or use them as hedges and insurance.
So I can't enlighten you on that department, or predicament, you're stuck on.
You seem to be in a lot losing trades, looking for a Plan B.

You don't say anything. You troll but it's clear that you don't know what you're doing. You live on here as the anti-Xela; similarly clueless but in no way looking to help.

 

[SPX Options Trader]

You don't say anything. You troll but it's clear that you don't know

Congratulations on your 2% day, destriero. I personally call you Churro.

 

[Overnight]

I don't give out Trade-specific advice, much less in something, futures, that I don't understand.
That's something only that trader should decide on, and execute on, and think on.

I'm a simple basic directional option buyer, puts and calls. I don't sell them or use them as hedges and insurance.
So I can't enlighten you on that department, or predicament, you're stuck on.
You seem to be in a lot of losing trades, looking for a Plan B, salvage plan.

But you're THE SPX Options Trader, and the ES is a very simple thing. It is a future of the S&P index! It doesn't get much simpler than that! Was just looking for a simple answer to a simple problem.

Your mettle has been tested and...

Bummer man.

 

[destriero]

Absent skew... which option (flat vol-surface) will have more "bloat" ...... the 70D put or the 30D put?

 

[BlueWaterSailor]

Considering your two hints: 1) It sounds like I should exercise that option prior to -- or at -- the close, and 2) It sounds like I would want to take advantage of the closing volatility

So how would that work? Still thinking…

A bit simpler than that, actually. Consider being short and CTM: if the underlying closes a penny ITM, you're going to get assigned a position - say, $45k worth of SPY. If OTM, then you get to keep all of your premium. Do you suppose it might be worth paying, oh, a nickel to get out a couple of minutes before expiration to avoid that?

Also: if I'm, say, a market maker on the other side of your trade, and I get some news after the cash close that tells me the stock (which closed a few cents OTM) is going to drop like a rock on Monday morning, do you think I might exercise my long against you and let you take that loss instead of me? Maybe, just maybe...

 

[destriero]

A bit simpler than that, actually. Consider being short and CTM: if the underlying closes a penny ITM, you're going to get assigned a position - say, $45k worth of SPY. If OTM, then you get to keep all of your premium. Do you suppose it might be worth paying, oh, a nickel to get out a couple of minutes before expiration to avoid that?

Also: if I'm, say, a market maker on the other side of your trade, and I get some news after the cash close that tells me the stock (which closed a few cents OTM) is going to drop like a rock on Monday morning, do you think I might exercise my long against you and let you take that loss instead of me? Maybe, just maybe...

I didn't watch that (bc I am not retarded) but he was probably in the trade bc of the news-vol. The guy is a legit fucking moron.

 

[SPX Options Trader]

But you're THE SPX Options Trader,

Bummer man.

Shh. Don't tell Nobody.

 

[Overnight]

I didn't watch that (bc I am not retarded) but he was probably in the trade bc of the news-vol. The guy is a legit fucking moron.

It was actually interesting (at least to me.) The gist of it was the trader he is talking about sold 5 put credit spreads, but chose to not exit his position because his positions were in profit on expiry day, but because of some accounting rule, the owner of his options chose to exercise them when the stock tanked below his strike price after RTH market close.

It's not a long video, give it a look and provide feedback if you could.

 

[BlueWaterSailor]

Overpay by buying ITM???

You must know this makes very little sense and deserves some form of explanation.

You cant be saying ONE ATM option is preferable to an ITM

He clearly has zero clue about extrinsic vs. intrinsic, greeks, etc., and is simply making binary bets. All of his non-answers here and the chest-beating about his "magical" methods make it absolutely obvious. Not to say that it's impossible to do - but the way he is coming across is seriously sus, as the kids say.

For those who are looking for a black and white differentiator between bullshitters and the pros who actually know what they're doing, this is a really good one: the former try to puff themselves up with all kinds of nonsense about their methods, while the latter just share good info. Not to sound like a fanboy, but - destriero, taowave, Magic, TheBigShort, MrMuppet, danielc1, and a few others here have just matter of factly helped me break through when I was stuck at various places on my learning curve to the point where I am now able to keep going on my own, and I am very grateful to all of them. Bullshit artists try to spin a web of mystery around what they do, and pretty much never share anything that is actually useful for getting ahead.