nice drop in the vix today 
Sold puts on SPY going long SPY ETF
- Thread starter KINGOFSHORTS
- Start date
Nice run up and of course VIX collapsing. VIX down to 18.63 and SPY 132.99
Hopefully you guys took advantage.
Hopefully you guys took advantage.
Guys, how do you explain this: SPY March 130 puts are priced this moment at 1.06/1.07 and 135 calls at 0.73/0.74. SPY trades at exactly 133.00
I got screwed with these calls. Market rebounded and they hardly moved. I think it is plain market manipulation. 2 points away calls are priced 2/3 of 3 points away puts.
I got screwed with these calls. Market rebounded and they hardly moved. I think it is plain market manipulation. 2 points away calls are priced 2/3 of 3 points away puts.
You need to go back to options school
If you want to make profits on a big VIX pop and subsequent collapse in VIX you want to sell the long dated ATM or slightly ITM puts (ie the leaps for example) on the SPY
They are very sensitive to Vega.
Take a look at the Greeks for those 130 puts.
you are better off trading the underlying if you want to maximize the movement when it comes to SPY recovery.
thats why I went long SPY in the 130s in addition to shorting the LEAPS.
dangerous to buy calls.wtic has apotential to go to 114
Quote from KINGOFSHORTS:
You need to go back to options school
If you want to make profits on a big VIX pop and subsequent collapse in VIX you want to sell the long dated ATM or slightly ITM puts (ie the leaps for example) on the SPY
I agree I have to go back to school
. However, that does not answer my specific question about the pricing of the options. AFAIK, nowhere in options pricing there is a market direction expectation component other than in actual demand and supply. LOok, Mar 128 put is more expensive than Mar 135 call although SPY trades at 132.71. What good is option pricing then? It is pure demand and supply.