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Thanks for this. I love when Apes go wild with out of the money calls! I have yet to lose selling them far out of the money calls (now I'm going to spread the trade because I jinxed myself). You know it's a meme frenzy when the last strike in the chain has the most volume   

Steve, I've been tracking. Great

GDXJ Updated View

Posted by DigiNomad on 2nd of Aug 2022 at 10:18 am

Steve, I've been tracking. Great call when it broke higher (finally). Interesting that it's swimming upstream against dollar strength today? 

Nice trade, Bandit. Thanks for sharing along the way. 

This quote really helped me

Posted by DigiNomad on 2nd of Aug 2022 at 09:47 am

This quote really helped me simplify and stick to a mechanical trading style (for the most part).  Of course, technicals are a huge part my trading plan, or I wouldn't be here. 

Matt, I probably would have

SPY and ES systems

Posted by DigiNomad on 2nd of Aug 2022 at 09:26 am

Matt, I probably would have picked different strikes and expiration if I knew it was going to be such a short trade, but I still managed to pull about 9% ROC out of it.

The short strike is 16 delta, which is a little bit more than 1 standard deviation....so it's just outside the expected move for the time period in question (45 days, in this case).

Thanks for the heads up.

SPY and ES systems

Posted by DigiNomad on 1st of Aug 2022 at 11:16 pm

Thanks for the heads up. Just took some SPX short call spreads off the board (the ones I had allocated to this system trade). 

Bandit - thanks, appreciate the detail!

These products never stop. They

Posted by DigiNomad on 1st of Aug 2022 at 04:02 pm

These products never stop. They also have a "hedged TSLA strategy ETF." Crazy, but I don't blame them for bundling stuff for retail that most successful traders are doing already. 

Bandit - what's your thesis? Particular since you're looking at VVIX vs VIX?

TSLA - flat on the

Posted by DigiNomad on 1st of Aug 2022 at 03:49 pm

TSLA - flat on the day does not tell the story!

I agree with the  sentiment to keep politics out of trading - but Nancy has made herself very relevant to traders, in the short term. 

Nancy's last dance - Historically speaking, things don't go well for the outgoing Speaker of the House after a midterm shellacking.  She's been looking at Florida property anyway - which is what I did after she ruined my state. She's clearly on her last leg....and probably wants to go out with a bang (maybe literally). 

Lol     ....I'm sure the CCP is! 

Watcdy -  Delta is a measure of how much the option price will move in relation to a move in the underlying. It's complicated but imagine that you are short a 16 delta call in SPY. In order to neutralize the trade (sort of), you would simply buy 16 shares of SPY against 1 short call...but then you would have to adjust as conditions change.

I definitely wouldn't recommend jumping into SPX credit spreads (short puts and calls) until you get some options trading under your belt with smaller instruments. Try "TastyTrade.com" for education. It's a great site and community - almost but not quite as good as this one ;)  Including a screenshot of a short SPX trade I would put on today, if I wanted to add more shorts. Note the trade characteristics in the left hand column. You can get your a!@ handed to you pretty quickly, if you aren't careful. The short call in this example is currently about 16 delta. 

Watcdy - We're overbought on many timeframes currently, so I'm leaning net short delta. I typically short 16 ish delta (puts and calls) and wait until I have overbought or oversold conditions in order to do so.  I'm making really good money today so might take some profits off the board and consider lining up some long delta trades for the move to the 50 or 61.8% fib that I think is likely. I'm also prepared to roll out and up to the next Fib level, if needed (need to keep 80+% cash for this strategy to be safe).

*None of Matt's systems are triggering short right now, so you're absolutely right that it's early...but that's for shorting at the money (effectively) with equites...which I'm not doing. 

SPX - Daily with some channels and Fibs. Dashed red line is where I'm short SPX calls. 

Steve, I personally think those charts get even more interesting when you include the parallel channel from the major downtrend.  Looks like we're going to get a touch around the SPX 4180 level (if the minor uptrend continues).   Fibs suggest this move up could eventually go to 4228...which would be nicely outside of the downtrend channel....which happens during major bear market rallies. Rallies inside the down trend channel aren't enough to turn enough bears into bulls and I think that's needed in order to build up energy for the next move lower.  

I wouldn't be surprised to see SPX 4375 since it's the 61.8 fib of the bear market to date. I'm short SPX calls at that level and will be adding if market decides to push in that direction. 

INMD - thanks again to

Posted by DigiNomad on 1st of Aug 2022 at 12:06 pm

INMD - thanks again to whoever it was that posted this a couple of weeks back!

I started with a risk reversal (sold a naked put to finance a naked call and now I've effectively locked in gains by adding wings (added short call at 45 to collect some premium and long put under the short put which I rolled up to 30. Target is $40). Not sure what you call my new position...some kind of condor, I think.  

TSLA - still early in

Posted by DigiNomad on 1st of Aug 2022 at 11:32 am

TSLA - still early in the day, but so far it's forming an ugly candle on a bunch of time frames. 

"she has to pickup her pallets of cash  in person" - Lol   

Also, don't downplay the panic on the left from the impendending midterms. Any distraction is better than 100% focus on the drubbing heading there way....even if it's war with China. 

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