With the market's volatile gyrations being felt everywhere, I feel this is opportunity time. There are many who at the current juncture believe we have a sustainable rally and others who believe the bear market rally has finally run its course and we are headed to much lower levels.
With all that varying opinion out there, there are some interesting opportunities in the options markets. I am not looking for trade ideas, I would just like to hear some interesting general strategies, it doesn't have to be where one is putting their money. For example, maybe some believe it is best to write covered calls on positions they currently hold while others are looking for some put protection.
I would be interested in reading any options ideas that are floating around your brains. There is money to be made!
Well I was long vol (equities, commodities & fx), I'm currently thinking about what to do from here.
"For example, maybe some believe it is best to write covered calls on positions they currently hold while others are looking for some put protection. "
these are very similar strategies.
They are opposite strategies: selling naked puts = writing covered calls.
indeed, misread it.
Sell variance now! Revsly, you made tons of money on that trade, well done.
I'd turn it around now (particularly S&P)
Good example: 30 day S&P VIX exploded to 40!!!
It's come down a bit, but one could sell a capped variance swap with a strike of 37% right now.
This play allows you to be ambivalent regarding market direction and just sell the massive spread between realized and implied variance/vol
Please approach the MS EQD desk for this contract. haha
CD~
Always trying to pitch me on those MS Variance Swaps! LOL
I'm long risk and short vol now, that was ridiculous. Yen exploded, anything risky imploded. Vol through the roof. Absurd.
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