How to trade volatility next week?

lindq said:
Best to sit on your hands on Monday and watch how the dust settles.
More...

Early bird gets the worm, there's always money to be made every business trading day -- if you sit on the sidelines, you're left with the leftover crap. :):sneaky:

Hindsight trading warriors.
 
stockoptionstrader said:
Like buying a strangle on the open monday, isn't it a no brainer? win-win situation or not necessarily?
More...



I think a strangle/straddle would be OK Monday morning. Below is a QQQ weekly OTM strangle paper trade - lets see how it does.



  • QQQ at $114.28.
  • QQQ weekly OTM strangle.
  • Buy 115.00 Sept16, 2016 call ask at $0.52.
  • Buy 113.00 Sept16, 2016 put ask at $0.80.
  • Total debit $1.32.
  • QQQ target at expiry greater than $116.50 OR less than $111.50.



:)
 
lawrence-lugar said:
Early bird gets the worm, there's always money to be made every business trading day -- if you sit on the sidelines, you're left with the leftover crap. :):sneaky:

Hindsight trading warriors.
More...


LOL. Early bird gets the worm. And that applies to trading, specifically how?

I think you're mixing your metaphors there, buddy.
 
Futures red out of the gate. To be expected.

This thing with Hillary, depending on how big of deal the media makes of it, may throw a wrench in this weeks plan. I fully expected a nice bounce tomorrow....but now, the media will(could) dominate and spook the herd. Who knows. It might be a non-event. CNBC will probably ignore it.

Fun stuff.
 
OptionGuru said:
I think a strangle/straddle would be OK Monday morning. Below is a QQQ weekly OTM strangle paper trade - lets see how it does.



  • QQQ at $114.28.
  • QQQ weekly OTM strangle.
  • Buy 115.00 Sept16, 2016 call ask at $0.52.
  • Buy 113.00 Sept16, 2016 put ask at $0.80.
  • Total debit $1.32.
  • QQQ target at expiry greater than $116.50 OR less than $111.50.



:)
More...

What's that, IV of 18?... you'd better be quick to get that one then... I think IV for weekly will sit higher, 25-ish. that's only a straddle value of about 2.5% of underlying.
 
vanzandt said:
I take back what I said. I looked at the option chains on VXX, and because of the 4 for 1 split, the option chains are ... imo.... too complicated to figure out. That probably sounds dumb to a lot of people here, but I won't trade something that I need to be doing mathematical gymnastics in my head with.
.
More...

OK.... for whatever reason I'm getting normal quotes on my VXX weekly chains now. So I go back to my previously trading plan.

vanzandt said:
Here's Monday's trade.....

Let VXX get real fat in the opening 20 minutes..... then go balls to the wall and buy the $40 puts after the "second" pullback it puts in. Not the first. If for some reason it comes out of the gate heading south....ie markets open green....buy the puts on the first jump north for VXX.

That'll be my trade at least. We shall see.

The Fed is not going to raise this month. December is priced in. S&P will take out 2187. The big correction will be in February.
More...
 
OptionGuru said:
I think a strangle/straddle would be OK Monday morning. Below is a QQQ weekly OTM strangle paper trade - lets see how it does.
  • QQQ at $114.28.
  • QQQ weekly OTM strangle.
  • Buy 115.00 Sept16, 2016 call ask at $0.52.
  • Buy 113.00 Sept16, 2016 put ask at $0.80.
  • Total debit $1.32.
  • QQQ target at expiry greater than $116.50 OR less than $111.50.
More...



  • The 115c/113p QQQ strangle is bearing fruit already.
  • QQQ at $116.32.
  • Bid on the 115.00 call is $1.54



:)
 
You must log in or register to reply here.
Back
Top