Volatility Spike Experience

Cmoss said:
forgive my ignorance, wouldnt i just move to puts in a bear market?
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I have been trading this for almost a year and have about an 80% win rate. Some big winners and some small winners. Since my losers are 100% of risked capital I just treat this as I would any other trade. I do not risk a lot on any one trade, even this trade. This has become a very solid trade for me.

As far as bear markets I have not live traded it in one yet but before I started trading this I did back test it by hand through the 2000 and 2008 bear markets. I traded it the exact same way as a bull market and it held up very nice using weekly call options. My holding period was a lot less usually 1-2 days max. Good luck Cmoss this is a nice trade but it takes guts to do it.
 
The problem is that the behavior of the S&P changed early august... It shifted from trending into June, then ranging/cyclic into July, then in early August it shifted back to trending and is still trending.

The right news catalyst would kick this market back into cyclic/ranging at the moment.

Oh, I may be looking for a quick long trade tomorrow if we break hard to around 1980. Got some solid support around 1955 over the next couple weeks. I am actually looking for upto a 15% pullback across all indices this fall starting around early October. I would like to see around 2020 on the SPX first though...
 
Down huge against this weeks option
Yesterdays entry is up nicely

I'll need a huge swing up to salvage this in the next two days :)

Oh the rollercoaster of Trading.
 
Closed out this weeks calls for a -76% at .36, they all can't be winners right? my 199c for next week are up 18%
 
Entered 198.5c for next week, RSI(4) spiked from 29 to 46, so I bought at 1.58

199c for this week are down 30%

I'm doing this more for a data set than anything else.
 
Closed both positions

This weeks 199c at 1.7 for 16% gain
Next weeks 198.5 at 2.02 for 28% gain

5/6 w/l ratio average day in trade is 2.83
 
With the VIX RSI(4) spiking from 36 to 52, i entered next weeks 195C for 2.66.

This will be a quick in and out move.
 
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