Vega and how to figure out where it is going

I am long on the 100 at $25 strike price, long on the 30 @ $24 strike price and the ratio is b/c I wanted to provide some downside protection and that was all the puts I could buy at the point in time b/c I trade 10-20k every day, over and over and make $30-3k (usually around a hundred or two per trade) and then have some monthly expiration options like the BAC ones.
THANKS
 
You have a backspread on the 24/25 line (strange ratio of 30:100) hedged w a 28x28 put spread .. Without running it thru my position dissector software, and if you trade this static w/o any adjustment till 1-3 days till expiration you have a huge risk hole around 24.5 till 25.5.. I think?
 
Where can I get this position software you have from as it seems EXTREMELY helpful?
Also, I am going to each position separately so let's say BAC pops up tomorrow (this would be very cool) I will sell the calls and take the profit as I want to make $500 off of all the calls at minimum on an up day and then I also buy DITM calls (in the case BAC is going up or DITM Puts in the inverse case) and sell those to make money during the day and these are the weeklys which "CAN" provide balancing leverage if I need them too.
 
DAYMSTR said:
I understand the Greeks and with the exception of buying a DITM option (delta being the most important) and selling it after a 5 penny move in 1-2 minutes, vega is very important to my trading style as I trade BAC, HAL, XOP and MRO and I usually buy the 17ths (standards) of each month and then supplement with weekly's.
I understand that before earnings and big events change in implied volatility will increase (vega will make your option worth a lot more) but let's say this upcoming week, I have almost 200 BAC contracts on 4 different positions (130 calls and 58 puts) and what causes I.V. to rise? Is it simply the bigger the price fluctuation as in if BAC drops 2% monday and then goes up 1% tuesday this is obviously causing IV to go up right? Also, I have noticed that IV drops at the end of the day after about 11-12 and keeps decreasing until close in most situations.
My question is, what can I do to gauge where I believe IV is going as Vega is the golden greek IMO and can also really fuck you over even if you have the right price movement.
ANY ADVICE is welcomed and lastly, I buy straddles and strangles occasionally for 17 days (calendar out) and then buy weekly's with intraday trading, how does the Vega change when you are in a straddle/strangle/spread BUT ONLY buying options, not selling in this discussion.
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BAC:

upload_2017-4-2_19-15-45.png
 
@Robert Morse Where can I get access to these charts? Thank you. Also, I would use the 30 Day IV as the most important more intraday or swing trading (1-10 trading days), would you agree with that in terms of option pricing and how to profit the most off of vega?

thanks
 
I think you are essentially scalping the 24/25 backspread which is fine- selling off contracts on your 25 line on up moves and I presume buying them back on downmoves to re-establish the backspread. or buying DITM call as a hedge (why not just go long stock as a hedge and avoid the bid/ask spread).... nothing wrong with that as long as you don't go too crazy with the ratios since when u sell off those contracts your position turns into bearish verticals. However as you near expiration , the delta bleed on those long calls AND short calls on the 24 line will make those verticals move against you on sustained up moves... so be careful. Every bad timing decision gets magnified as you move towards expiration.
 
DAYMSTR said:
@Robert Morse Where can I get access to these charts? Thank you. Also, I would use the 30 Day IV as the most important more intraday or swing trading (1-10 trading days), would you agree with that in terms of option pricing and how to profit the most off of vega?

thanks
More...
This is a screenshot from LVX. Try the demo. I can't give trading advice. It would make sense to only check the options range you are monitoring. This is MRO with HV30 and IV30 only.

upload_2017-4-2_20-1-32.png

upload_2017-4-2_20-1-51.png
 
also I think you should be aware that when BAC pops and you make $$ on the calls, you are most likely getting your $$ from the delta change not the vega. In fact you are prob losing out on the vega sinc ein equities, upmoves generally result in IV going down and vice versa on down moves.
 
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