Thanks. The amount collected on dollar-wides makes sense. I stay
away from selling cheap options altogether, though. I don't think
volatility in GDX is high enough relative to a $1.40 weekly 1
standard deviation to warrant the upside risk. If you're trying to
improve cost basis on being long the etf, the puts are decent naked
-- but that's only meant in terms of getting long the etf (assuming
one wants a longer term long).
My choices in these trades are also influenced by the context of
long only IRAs and siphoning off a bit of vol on a long portfolio
which is directly correlated to . The options trades aren't
meant as best practices on options trading in general.
I could use the inverse ETFs but do not want to hold them or
book losses, and the option spreads give a bit of price buffer and
theta decay if I get bad trade location. I could use high
delta in the moneys, particularly with more directional bias, but
that has a bit more risk, too. Certainly welcome any ideas
for more efficiency.
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Thanks. The amount collected on
2015 GDXJ Model Portfolio - SOLD NAKED 2 DAY 40 GDX 19.5 PUTS 22C AT 19.83
Posted by a_l_ on 7th of Jan 2015 at 12:06 pm
Thanks. The amount collected on dollar-wides makes sense. I stay away from selling cheap options altogether, though. I don't think volatility in GDX is high enough relative to a $1.40 weekly 1 standard deviation to warrant the upside risk. If you're trying to improve cost basis on being long the etf, the puts are decent naked -- but that's only meant in terms of getting long the etf (assuming one wants a longer term long).
Posted by hatefalseweight on 7th of Jan 2015 at 12:30 pm
My choices in these trades are also influenced by the context of long only IRAs and siphoning off a bit of vol on a long portfolio which is directly correlated to . The options trades aren't meant as best practices on options trading in general.
I could use the inverse ETFs but do not want to hold them or book losses, and the option spreads give a bit of price buffer and theta decay if I get bad trade location. I could use high delta in the moneys, particularly with more directional bias, but that has a bit more risk, too. Certainly welcome any ideas for more efficiency.