#VIXIndicator is updated (click “Home/REFRESH” to keep right-hand column updated)
Volatility was crushed on Monday, dropping over 25% and closing below the VIX 78.6% Fib line to cancel the Downside Warning.
Tuesday’s first warning level 13.55 (25% above 2-day closing low), and 14.96 would establish a new Downside Warning. Alternatively, three consecutive closes below 11.32 will constitute an Upside Warning.
So it looks like most of the traders on this site have had similar trading journey’s. Start out trading some funds and stocks when younger. Realize it is a 50-50 game most of the time. Then try to trade directionally but really hard to predict the future all the time. Then get into options for the leverage and income and then finally realize the house always wins and selling options is how the professionals make big and steady money. Sure, may have to pay out the occasional lottery ticket but in the long run the casino/insurance company always wins. Good to be on the right side of the trade and glad to be here!! I will be picking some of your brains on these volatility trades.
$SPX STO 5/26 2465/2440 BECS @ 1.55 Thank you @jeffcp66
$SPX BTC 5/5 2220/2245 @.15 89% profit
#VXXGame After selling multiple options on volatility spikes, I usually prefer to close them for 80-95% of max profit rather than wait for expiration. So I put close orders on all short volatility positions today. These filled:
BTC SVXY May 19th 75 put for .12. Sold for 1.30 on Apr. 11
BTC SVXY May 12th 65 puts for .05. Sold for .60 on Apr 13th
Sold May 19th 2435/2455 Bear call spread @ 1.00. Revisiting this to build my experience in placing and management. We shall see.
$TDG #ShortPuts #FallingKnife – Bought to close 1 TDG May 19 2017 125.0 Put @ 0.05.
It won’t trade any lower and still has a month to run before expiration.
Originally sold only 1 month ago at 1.55.
March 29th Sold 2 ea April 2275 Short puts @ 7.70
April 24th Bought 2 April 28th 2275 short puts @ 0.60
gain @ 92%
April 6th sold 2 ea May 5th 2270 short puts @ 7.40
April 24th bought 2 ea Mat 5th 2270 short puts @ 1.30
April 6th sold 2 ea May 12th 2255 short puts @ 8.60
April 24th bought 2 ea Mat 12th 2255 short puts @ 2.30
Closed out my April Options Month…when the gap up today fills to the down side,
I’ll sell my 2nd shorts against the existing longs..for the may trades..