If you're a volatility trader, you most likely got run over by the market. I know I did. There's no volatility to sell for a credit in order to use some credit spreads or naked options strategies nowhere and when you buy VIX/VXX/UVXY you go to a war with a very stubborn, powerful and annoying adversary.
I'm glad that today is 4'th of July. Besides the obvious reasons, I have a worry free day. A day where I don't have to search luckless for trades for a credit, get some theta decay and some POP to CPR my portfolio.
I found an opportunity to sell volatility in WAG and the chart looked in line with the strategy i choose.
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| Walgreens chart |
First i tried to sell the 67.5 put part of an iron condor strategy, i tried for few days to reopen the trade for a decent credit but without success. I liked the idea of having the break evens very close to 1SD. then, because the lack of other opportunities i rearranged the trade and decided that selling the 70 put after all is not that bad. you can see on the chart the prices and their meanings and below you can see the statistics of the strategy.
even though at one point i was 3 cents below the market, still no fill. I have no credit strategy in my portfolio.
all my trades are directional and most of my previous losses are derived from debit spreads. so what to do? risk more on debit spreads, take what i get in a credit spread, stay on the sidelines, pray not to lose all my money?
this market is like a bad movie. some people whisper that soon it will be the premiere of the 'uprise of the volatility', best movie ever!
all can we do is to manage things in the way to get to be around and see it...
here are few ideas for direction trades:
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| Gold chart |
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| natural gas chart |
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| Emerging Markets chart |
even though at one point i was 3 cents below the market, still no fill. I have no credit strategy in my portfolio.
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