Posted by DigiNomad on 11th of Aug 2022 at 12:01 pm
Fundamentalvalues - of course, always stick with what works for
you. However, from my perspective, in an ETF it seems that you give
up the power of premium (I prefer to sell it) and you're stuck with
mostly directional trading. Yes, you're both long and short so you
have a sort of "spread" on. But you have to do it "at the
money"....which seems to add a lot of risk. Interesting approach
though. I know the creators are using futures and options for the
product, so I'll have to think about when it might not act how you
expect it to act, since the underlyings are a bunch of derivatives.
For the bear side, I would be surprised if you get your 3X
protection on BIG down days with spiking Vol.
It acts fine, been doing it a long time. I prefer trading this
way. Was never successful with options as they are too volatile for
me. I have a friend who does stuff that isn't proximal and income
stuff like you're talking about and is very good at it. I may have
to try and do some small fishing to see if I like it.
If its not broke I can't fix it though. I've found that sticking
to my lane and not breaking my mandate have been important. Anytime
I try and be someone else or use their strategy, I lose money. Pros
and cons to each strategy. What matters is that whatever we are
doing is working. I appreciate you sharing yours with me.
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Fundamentalvalues - of course, always
XBI 60
Posted by DigiNomad on 11th of Aug 2022 at 12:01 pm
Fundamentalvalues - of course, always stick with what works for you. However, from my perspective, in an ETF it seems that you give up the power of premium (I prefer to sell it) and you're stuck with mostly directional trading. Yes, you're both long and short so you have a sort of "spread" on. But you have to do it "at the money"....which seems to add a lot of risk. Interesting approach though. I know the creators are using futures and options for the product, so I'll have to think about when it might not act how you expect it to act, since the underlyings are a bunch of derivatives.
For the bear side, I would be surprised if you get your 3X protection on BIG down days with spiking Vol.
It acts fine, been doing
Posted by fundamentalvalues on 11th of Aug 2022 at 12:06 pm
It acts fine, been doing it a long time. I prefer trading this way. Was never successful with options as they are too volatile for me. I have a friend who does stuff that isn't proximal and income stuff like you're talking about and is very good at it. I may have to try and do some small fishing to see if I like it.
If its not broke I can't fix it though. I've found that sticking to my lane and not breaking my mandate have been important. Anytime I try and be someone else or use their strategy, I lose money. Pros and cons to each strategy. What matters is that whatever we are doing is working. I appreciate you sharing yours with me.