right now the market clearly wants some gov intervention etc,
clarity. However given how far we've fallen, one could consider
some low delta SPY calls maybe delta 20 - 30 that expire in May,
trading for 3 - 5, it's not a lot to risk, and if we do get some
news catalyst, those could quadruple, quintuple etc on some rip
your face off snap back rally, while at worst they go near zero,
however they are cheap enough it's not a lot to risk and your
upside potential is way more than your loss potential
it's about timing, I haven't bought any yet, but watching the
charts etc
the only issue however is with the VIX so high the options are
high, so when the VIX falls you will lose some premium despite the
market going up.
some cheap SPY calls
Posted by matt on 12th of Mar 2020 at 10:33 am
right now the market clearly wants some gov intervention etc, clarity. However given how far we've fallen, one could consider some low delta SPY calls maybe delta 20 - 30 that expire in May, trading for 3 - 5, it's not a lot to risk, and if we do get some news catalyst, those could quadruple, quintuple etc on some rip your face off snap back rally, while at worst they go near zero, however they are cheap enough it's not a lot to risk and your upside potential is way more than your loss potential
it's about timing, I haven't bought any yet, but watching the charts etc
the only issue however is with the VIX so high the options are high, so when the VIX falls you will lose some premium despite the market going up.
Matt, Like SPY 297 5/15
Posted by mdgfain on 12th of Mar 2020 at 10:42 am
Matt, Like SPY 297 5/15 call for 4.75?
again the main problem with
Posted by matt on 12th of Mar 2020 at 10:39 am
again the main problem with the options is the VIX being so high
Which is why I like
Posted by stevieb294 on 12th of Mar 2020 at 10:41 am
Which is why I like credit spreads when the IV is high once I know the direction.
thanks Matt … been keeping
Posted by retirefire on 12th of Mar 2020 at 10:39 am
thanks Matt … been keeping an eye on those original May 15 300, 301 or even 296 calls.... if that's what you mean?