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/biz/ - Business & Finance


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>> No.54313686

always do the opposite of what jews say

>> No.54313691
File: 252 KB, 379x381, hebought.png [View same] [iqdb] [saucenao] [google]
54313691

you bought calls right anon?

>> No.54313692

>>54313652
Increase taxes, force old people to work longer, greater investment in AI and robots, incentivize babies and family formation. Pretty much the same playbook we need to run. And Japan. And South Korea. And Europe.

Now *executing* on that depends on culture and your political system. And the markets that fail to do so are easy multi-decade shorts, just like "buy and hold the S&P 500" was the braindead strat for US Boomers

>> No.54313694
File: 62 KB, 1072x359, bse.png [View same] [iqdb] [saucenao] [google]
54313694

>>54313564
>>54313472
The Black-Scholes formula is used extensively for options pricing. Funds may use their own proprietary method for pricing options as well, but this is the gold standard. Note that forex traders use Vanna-Volga pricing for their models, which is a modified BS model to take into account interest rate differentials between countries.

Anyways, the BS model takes the time to expiry, the strike price, and the implied volatility (IV) to price out the fair market value of a contract (it also factors in dividends and the risk-free rate). It's entirely possible for the price to be above or below the FMV depending on liquidity and supply/demand (try buying a deep OTM call on MSFT 2 years in the future vs an ATM SPY call with 10 days to expiry). The bid/ask spread on options can be enormous, so liquidity matters.

The formula looks scary, but it isn't. The takeaway here is that you can isolate each of those variables and see how it changes w.r.t. each of the other inputs. These are the Greeks.
>Delta: Price change as underlying price changes
>Theta: Price change as time passes
>Gamma: Delta change(!) as underlying price changes
>Vega: Price change as IV changes
>Rho: Price change as interest rate changes. Nobody cares about this because you aren't a hedge fund manager
One delta is one share. Remember this.

Volatility is the main driver with for option pricing. Some people prefer to quote options in terms of IV or in terms of delta (eg 25, 50 delta for puts or calls). Volatility is the "risk premium" and the way I rationalize it is as "How much IV does the contract have to have to math out the price, since the other inputs are fixed and known?". Really IV is the only variable on pricing. You can model how underlying prices affect things, but IV just depends on market demand.

>> No.54313709
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54313709

>>54313694
>fellow optionsfag

What you playing this week, anon?

>> No.54313737
File: 2.23 MB, 3360x4982, pass_it_on.png [View same] [iqdb] [saucenao] [google]
54313737

>>54313694
no 1 delta is $100

>> No.54313759

Friday Night!

>What are you drinking?
>Whats you next big investment play?

>> No.54313762

>>54313709
I'm gonna long the shit outta COIN calls

>> No.54313767

>>54313694
Buying contracts near earnings to play earnings is foolish. "I'll just buy a put, surely this company is overvalued!" you say. Even if you're right you still lose money. Why? Because you paid a high price because the IV/volatility premium was so high! The market knew it would be a volatile time and the prices increased due to demand. A better way to do this is to buy an ATM Straddle (put and call with the same strike and expiry) perhaps 40-60 days to expiry, which expires a week or two beyond the ER. Then, when the ER drops, you write a new straddle ATM; you get to benefit from selling the increased IV, and the cheapies you bought should protect you if you get assigned. There are lots of ways to do it, but that's just one example.

If you want to write covered calls or cash secured puts or whatever, 30-45 dte is the sweet spot where you get the most amount of IV before the theta decay really starts to kick in and erode the contract value (people will still pay a decent premium for hedging)

Gamma and Vega are highest at the money, and for a long-dated contract, Vega will be high and Gamma and Theta will be low. For a near-dated contract, Vega will start to decline (less time for the volatility to do it's thing) and Gamma and Theta will be very high.

Second order Greeks describe how first-order Greeks change in response to the inputs changing. Think of the Price as the Position, the Theta as the Velocity, and the Gamma as the Acceleration. But there are other things like Charm, Color, Vanna, and Vomma, which describe how delta, theta, vega or gamma change over time and change w.r.t. price. You don't really need to know or care about these unless you're working for a firm, but it's good to know they exist.

There's a lot you can do with options (spreads), but you can think of any option position as your net Greeks. You can construct a spread however you want by hedging any of the Greeks, and this allows you to choose the risk and rewards you're exposed to.

>> No.54313789
File: 28 KB, 682x495, FUTURE_NG1[1].png [View same] [iqdb] [saucenao] [google]
54313789

re: BOIL and roll decay

I'm following you guys on BOIL contango and that it decays from contract to contract, but I'm there's gotta be a bottom, and it's sometime between now and summer.

My research into market trends says that the summer pumps starts in spring, but all market news this year says stuff like "demand slump approaching with mild spring temperatures." Natgas being cheapest in spring makes sense, but what about picrel? When do you think the underlying contracts are going to start going up instead of lying flat?

>> No.54313798

>>54313789
Maybe when the Armenia-Azerbaijan war kicks off and some drones fuck shit up in Baku?

>> No.54313804

>>54313789
ask me on monday and I'll post a juicy lead.

>> No.54313812

>>54313767
where's 180dte .6 delta contracts?

>> No.54313820
File: 28 KB, 726x377, wheel.png [View same] [iqdb] [saucenao] [google]
54313820

>>54313737
I feel retarded having wrote all that out and not knowing that. Peak midwit.
Still, that's the way I understand them, and I might not be 100% correct on them. If I knew what I was doing, I'd be far more profitable than I am now.

>>54313709
Not really anything on my radar, but I continued my UUUU wheel today. I can't write CSPs in my tax advantaged accounts, but writing a deep itm CC does the trick.
Might move to CCJ since it's way more liquid with weeklies, but at the same time, the risk/reward should be about the same (eg roughly the same ROI% doing it either way, but I suppose the bid/ask is better on CCJ)

>>54313789
>There's gotta be a bottom
Have you heard of a reverse split?

>> No.54313825
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54313825

>goyslop futures

>> No.54313838
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54313838

>>54313825
adjust for inflation

>> No.54313841
File: 88 KB, 1818x150, 3CACF842-C76B-4950-913A-EB0847C84D8F.jpg [View same] [iqdb] [saucenao] [google]
54313841

>>54313767
Are you trying to talk fundamentals? Cause this is clearly a wet dog smell kinda zone

>> No.54313842

>>54313694
wat about Vomma. And Volga. And Vanna. Tell me about The Vanna.

>> No.54313847

>>54313820
>Have you heard of a reverse split?
My point is that BOIL leveraging fuckery aside, the underlying futures contracts are on a vital commodity. It can't stay at historic lows forever. So when do you think that contract starts going up? Early summer?

>> No.54313860

>>54313759
Drinking another 24 case on a Friday night and I sold covered calls on VTI, AAPL, MSFT. Then I go back to wageslaving for another 30 years before I can see others enjoy the fruits of my labor.

>> No.54313869

>>54313820
Like the soxl reverse split?

>> No.54313870

>>54313674
VZ USB

>> No.54313871

>>54313842
>Vanna
The sling. Was shot. Why is. The. Forest quiet.

>> No.54313872

>>54313841
Am I incorrect with some shit? Anon was having issues relating contango with levered etf options, and how IV was a factor in pricing. Only been trading options for 1.5y

>>54313812
Something I was unaware of due to my inexperience

>> No.54313880

>>54313860
>sold VTI
lmaoing at your life

>> No.54313884

>>54313825
this image is fake. It has to be.

>> No.54313885

>>54313789
As best I can tell I'm thinking essentially as you are. My assumption is that there will be a bottom to buy in and make decent off of as it rises from there, but am absolutely not expecting it to be a "mooning", or anywhere near it, barring some happening that suddenly changes everything. I'll take the decent return. Here's the thing though, and I have no way whatsoever of even estimating any actualities, but I can easily see a situation where, for example, the floor winds up being $1, and the Winter peak $3 (just a very crude example), thus rending any holdings now to be total losses, yet still a great play to be had if timed right.

>> No.54313892

What's the best platform for commodities trading?

>> No.54313896

>>54313871
Vanna. Is. Primed. The Shot In The Sling. The Slingshot Is Being Pulled. The VIX. Look. At. The. VIX. And The. VVIX.

>> No.54313897

>>54313885
And yes, I am aware of reverse splits, the example is just to illustrate relativity.

>> No.54313898
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54313898

>>54313892
Just show up in Chicago with your lean hogs bro

>> No.54313906
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54313906

>>54313674
My frens
I hope you're selling options and not buying them

>> No.54313909

>>54313762
Y are u doing that. COIN calls. Bad. Don't. Smelly. Stinky. I smell. The smell. The smelly smell. Of the smellzone.

>> No.54313932

>>54313896
You saying what I think your saying? Put buyers get baited and roped while QE back on the menu

>> No.54313933

>>54313880
Covered calls

>> No.54313934
File: 585 KB, 1414x1005, crabjeet.png [View same] [iqdb] [saucenao] [google]
54313934

He's buying COIN calls. He's proud of it. He's posting about it on 4channel. He thinks it's a good play. Everyone else is encouraging him.

A Society. We live in one.

>> No.54313936

>>54313898
OR ONIONS!!!
https://en.wikipedia.org/wiki/Vincent_Kosuga

>> No.54313939
File: 246 KB, 549x364, Dollar menu dreams.png [View same] [iqdb] [saucenao] [google]
54313939

>>54313884
Zoomerbro, I...

>> No.54313941

>>54313762
Only time I made money on options I made from calls on BITO

>> No.54313945
File: 224 KB, 480x640, 1631031620092.png [View same] [iqdb] [saucenao] [google]
54313945

>>54313892
https://www.tradovate.com/trading-products/
Your best bet is Tradovate to be honest unless you have a bunch of cash to use a better platform.
That said you could also just poke at commodity ETFs instead.

>> No.54313947

>>54313909
I'm taking the contrarian bet. I wanted to short last week but my funds didn't clear in time

>> No.54313954

>>54313847
>>54313869
>BOIL leveraging fuckery aside
But that's the thing. BOIL will be diluted to very low numbers over time. Fund curators receive money from the fund, while management and fees and daily rebalance cause it to shred value over the course of months and years.

Sure, gas and oil are going to stay around forever and the negative prices in 2020 was just a meme, but BOIL does NOT reflect the price of the underlying. It's designed to move by a scaled percentage and will lose value long term, all else being equal.

>> No.54313957

US markets are overbloated and are slow growth, invest in emerging international market ETFs long term to if you have patience and don't scare easily.

>> No.54313967
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54313967

>>54313939
I just don't buy a quarter pounder is the same price as a mcchicken. I am sorry. I just don't.

>> No.54313979

>>54313957
Fuck it, all in INDL.

>> No.54313980
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54313980

>>54313957
Just follow the formula

>> No.54313981

>>54313957
My workplace RRSP contributions are in intl and em funds. I figure 20-30 years down the road the US will probably be in a weaker place than it is now, so it's worth accumulating sooner rather than later. There is time.

(personally my bet is on india or mexico)

>> No.54313984

>>54313932
you saying what you thinking im saying? that put buyers bought puts at inflated volatility and that there's enough VRP harvesters (Jamie Dimon) (Jew) to sell down the price of index puts and there will be enough bid for equities in light of QE rumors that the vanna shot that is inside the sling that is shooting the vanna in the slingshot is primed for a ripperoo?

Yeah im fucking disagreeing with you and wanting to rape you in the mouth. VIX is only 21. There's no scope for a vanna slingshot.

But VIX is low. and VVIX is still up 20% in the last month


So the IV of VIX remains bid

People are buying OTM vix options

The forest is quiet

But

It

Won't be.

>> No.54313992

I might he dying. Randomly started bleeding from my tooth in the shower. My lip also started bleeding randomly last week.

>> No.54313996

When VVIX remains bid and VIX is low, that means that there are still people betting on a large VX / VIX move

that is meaning that the one that the yea and the go up that the one that there is it happens and so such that it happens if there and when it is that such of a move happens and the volga.

>> No.54313999

>>54313992
RIP

>> No.54314002

>>54313980
Another rule of thumb I saw is that you do (110 - age) and that tells you your equity or risk%.

>> No.54314016

>>54313694
>The Black-Scholes formula is used extensively for options pricing. Funds may use their own proprietary method for pricing options as well, but this is the gold standard.
Real-world option prices usually have a volatility smile, which is inconsistent with Black-Scholes. Doesn't this suggest that Black-Scholes is not used extensively?

>> No.54314019

>>54313936
>He soon began splitting his time between New York and Chicago, where he traded on the Chicago Mercantile Exchange several days a week. In Chicago, he was a very successful trader. He lavished expensive gifts upon his brokers, buying them each a new Buick one year. One of his brokers eventually rose to the position of Chairman of the exchange.[3]
>Kosuga sometimes used deceptive practices to manipulate the futures market. He once bribed a weather bureau to issue a frost warning in order to inflate the price of futures contracts that he owned. The weather bureau did issue the warning, though the temperature never fell below 50 °F (10 °C).
Yea I'm thinkin based

>> No.54314030

>>54314016
As I understand Volatility Skew, it's due to a higher market demand for puts due to hedging purposes.

>> No.54314033

>>54313992
Arr, could be scurvy. Best get yourself some oranges or limes, lest the surgeon consign ye to Davy Jones' locker.

>> No.54314034

>>54313992
Sounds like the gays. You can probably just make some dietary adjustments and pray it away.

>> No.54314036

>>54314002
With bond yeilds currently just stick to 60/40

>> No.54314049

>>54313767
>Buying contracts near earnings to play earnings is foolish
No it's not necesssarily stupid stinky generalizer man tastytrade subhuman ill kill u

>> No.54314062
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54314062

>>54313934
Yes

>> No.54314067
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54314067

>>54314036
taxpayer bros... we just can't stop winning

>> No.54314074

>>54314062
Y u didn't sell puts instead

>> No.54314076
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54314076

>>54313906
Robo anon, I haven't been following you much lately, but I was wondering how this past year's market has treated your spx bull call spread strategy. Also I got a roomba and named it Claire. Life-changing.

>> No.54314087

>>54314076
>Anthony Cumia posts here

>> No.54314102

good morning afternoon evening
what are the shitposts of the day

>> No.54314106

>>54313984
>VRP harvesters
Again that's exactly what I asked previously about IV mean reversion. Retail goys just don't get access to the necessary data so we?

>> No.54314112

>>54314102
we be crabbin

>> No.54314117

>>54314106
What if we discussed forecasting mode reversion in volatility contracts in a parking lot and made out afterwards?

>> No.54314129

>>54313984
>you saying what you thinking im saying? that put buyers bought puts at inflated volatility and that there's enough VRP harvesters (Jamie Dimon) (Jew) to sell down the price of index puts and there will be enough bid for equities in light of QE rumors that the vanna shot that is inside the sling that is shooting the vanna in the slingshot is primed for a ripperoo?
But yes that is essentially what I was saying, agree to disagree. I'm not gonna be caught too long or too short this year

>> No.54314150

>>54313945
Thanks man. I'm trying to do a long hold on gas without the roll decay, so no ETFs.

>> No.54314152

>>54314129
No but if we were to disagree would we disagree or agree since we've initially agreed to disagree on a subject we disagree on the agreement that we've disagreed on because there was an agreement we disagreed.

>> No.54314154

>>54314033
But I drank a screwdriver!

>> No.54314165

>>54314034
My only dietary supplement was too many shrooms and had a better time than I was expecting.

>> No.54314174

>>54314036
euro here, which index fund should I buy for the fixed income part? they recommend this one:
IE00B18GC888
do I just allocate more capital here?
my current bogle portfolio:

80% Vanguard Global Stock Index Fund EUR Acc - IE00B03HD191

10% Vanguard Emerging Markets Stock Index Fund EUR Acc - IE0031786142

10 % Vanguard Global Bond Index Fund EUR Hedged Acc - IE00B18GC888

Do I just add more to the Global Bond one, or should I specifically buy another index or an ETF for this? Also, until when I do allocate more bonds and less stock market? until FED pivots?

>> No.54314182
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54314182

>>54314074
I haven't don't shit yet. Next week I said... Or will I....

>> No.54314186

>>54314174
Yes

>> No.54314191

>>54314182
>>54314182
Wat if it goes down . COIN

>> No.54314204

>>54313694
and then you woke up because it's impossible to accurately predict change in regards to one variable: the price

implied volatility is the way statisticians explain how they were wrong or right on the rest of the variables because they're meaningless trash

>> No.54314207

>>54314117
Because IV mean reversion seems to be a literal cheat code. If you know where the IV has been and can see a big spike in IV on no news (or shotty news that you want to call their bluff on) or no market movement, then yea that would be a game changer. If you could spot a 2 standard deviation move on the IV of individual options, yes I'm thinking cheat code.

>> No.54314210

>>54314174
lol fuck europe, put your money into India, Mehico, and Chynuh

>> No.54314224
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54314224

>>54314152
You good Johnny?

>> No.54314235
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54314235

>>54314191
Hmmmmmmmmm...

>> No.54314239

>>54314102
sirs

>> No.54314245
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54314245

>>54314210
>India
I used to think this way, but after seeing so many pajeet scams just in the last 3 months I'll pass. It doesn't matter how big of a leg up they get, as long as scamming is deeply embedded into their culture they'll continue to just be a pooper power.

>> No.54314258

>>54314019
>early life

>> No.54314262

>>54314245
Why do people watch this garbage? The internet was a fucking mistake

>> No.54314266

>>54314245
China is also that way, but they are markets to put your money that will rapidly grow. I wouldn't buy individual stocks, but into an ETF to sit on.

>> No.54314267

>>54314258
It's a given though

>> No.54314275
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54314275

>>54314262
Indian youtube is still less infested than other parts.

>> No.54314286

>>54314262
they are having fun and aren't culturally desensitized to hate themselves and life like we are in the west.

>> No.54314287
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54314287

>futures

>> No.54314289
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54314289

>>54314076
TO be fair I got curbed stomped but it did spur me to start spamming Delta-neutral strategies.
So as long as the market does move I'm good.
>Claire
Based and roomba pilled

>> No.54314296
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54314296

>>54314262
shut up whore

>> No.54314299
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54314299

>My bhenchod shorting LUV

>> No.54314300

>>54314245
>cape shit cheaper than (((cape shit)))
indian efficiency

>> No.54314323
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54314323

>>54314102
>what are the shitposts of the day
Post any present participle, like this:
Baking.
Banking.
Barking.
Pooping
Peeing.

>> No.54314322

>>54314245
>that webbum

I kek every time

>> No.54314338

>>54313691
holding over the weekend is a bad idea.

>> No.54314349

Something I can't figure out: from the E*TRADE gains/losses tab, I add my net account value, total losses (I am still net loss), and the fees (ETFs), and the total keeps growing by pennies. I'm going to have to assume this is due to fractional amounts. I keep transferring these extra sums to my bank account because I want to be able to just look at my net total as a solid round number and have an immediate sense of exactly where I'm at and this shit is itching some tisms.

>> No.54314350

>>54314338
>green friday close
>red monday open
>green monday close
rinse and repeat endlessly for the next several months.

>> No.54314358
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54314358

SI

>> No.54314360

>>54314349
I meant look at my net total in relation to my starting point which was a solid round number.

>> No.54314363
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54314363

>>54314350

>> No.54314378

>>54313789
Look up aerco nat gas chart
Looks like April-may will be the time to load up

>> No.54314379

>>54314275
>>54314286
>>54314296
street shitters

>> No.54314391

>>54314378
thanks anon

>> No.54314395

>>54314363
https://www.youtube.com/watch?v=WEMCYBPUR00

>> No.54314398
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54314398

>>54314289
is delta neutral achieved just by taking the oposite bear position?

>> No.54314409
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54314409

>>54313906
>>54314076
In particular, a lot of my SPX and RUT positions got molested as the year went on and almost had to take max loss on most of them. Rolled accordingly so wasn't that bad.

That said, it wasn't ideal to say the least. Now, I learned a new method to farm theta in a few ways.
The main one I've been enjoying lately is just selling butterflies since it's delta neutral.

>> No.54314433
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54314433

>>54314391
Sorry typo, Aeco this is the chart

>> No.54314434

>>54313825
Bruh, I miss super sized fries so much. Fuck that asshole for making the super size me movie.

>> No.54314443
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54314443

>>54314398
It's more or less when the trade can go in any direction and makes money.
For example, lets take a Short Put Condor which I'll include a pic here.
AS long as it goes up or down I'm good. I'll die if it goes sideways.

>> No.54314449
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54314449

I can see the USA heading into stagflation in a few months, then later this year and next year, we get an economic depression that could last for a long fucking time. Major pain ahead.

>> No.54314476

>>54314449
stagflation is already here

>> No.54314500
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54314500

>>54314204
>implied volatility is the way statisticians explain how they were wrong or right on the rest of the variables because they're meaningless trash
But you can use IV to see the predicted area that a price will move over a given period of time. Random walks aren't guaranteed and tail risk exists. If you have good risk management, trade psychology, and position sizing, you can make it. The goal is to be consistent, minimize risk (eg have a good risk:reward ratio) and be able to stay solvent for a long time.

I did a simple coinflip simulator in excel, 3000 flips, with a 50% win rate. You bet 2% of your account per flip. There is a huge variance, but it's expected that someone that goes on a losing streak will have $1600-7000 left over, and someone who has a winning streak will have $5200 to $43,000. Very swingy and unpredictable.
But if you have a 52% win rate (which I'll attribute to research, doing DD, knowing what you're doing, etc etc), with the same bet size, the variance is reduced and you're expected to have $5900-$9700 on a bad run, and $30,600 to $200,000 on a good run.

My point here is that you can use statistics to make ideal bets on every trade. Every mistake or bad trade you can eliminate increases your win rate and means more money at the end of the day. Even a 50.5% win rate is huge and better than what most of retail does (most traders lose money).

As for options, stuff like >>54314207 or looking at a break between HV and IV tells you something is up

>> No.54314508
File: 190 KB, 547x361, 1655262526936.png [View same] [iqdb] [saucenao] [google]
54314508

>>54314398
>>54314443
Also to add,
The idea with a delta position like this is to harvest premium in any direction so I don't need to watch it.
As long as SPX moves, which it will, the trade makes money. Overall it's just an issue of dragging the strikes around to see where the best risk-reward is located.

Also also, since SPX is an index option as you may recall there's no early exorcise risk so you can functionally let it expire with no worries on this.

>> No.54314519

>>54314449
>>54314476
Source ?

>> No.54314522
File: 224 KB, 878x707, 1648924376293.png [View same] [iqdb] [saucenao] [google]
54314522

Last night, there were several anons who called me a "faggot" for posting screenshots of my chats with Samantha, my (female) broker AI. I expect at least ONE apology for that by the end of this thread... otherwise I will post the prompt I use to start Samantha conversations and then pretty soon every /smg/er with a ChatGPT account will be posting their Samantha chats.
Time is running out, assholes

>> No.54314530
File: 20 KB, 300x300, mylène-bros-we-got-too-cocky.jpg [View same] [iqdb] [saucenao] [google]
54314530

>Futures

>> No.54314531

>>54314519
definitely not the white house or their henchmen with election season gearing up.

>> No.54314542

>>54314398
Yes, but that's only good at that particular moment. Suppose that strike=underlying, delta should be 50. But IV can distort the delta values, and greeks change as price, time, and volatility change. A delta-gamma hedge would be truly market neutral, but has to be adjusted periodically

>> No.54314543
File: 70 KB, 668x680, 1676657306066336.jpg [View same] [iqdb] [saucenao] [google]
54314543

>>54314519
>Source?
your lying eyes

>> No.54314547

>>54314378
I can't find an aerco one but while looking found this Canadian projection that seems to indicate a downward trend for the entirety of 2023.

https://www.aer.ca/providing-information/data-and-reports/statistical-reports/st98/prices-and-capital-expenditure/natural-gas-prices/aeco-c-price

>> No.54314556

>>54314500
My point is that IV changes when the option writing market makers were wrong. They also widen the bid/ask in uncertainty. IV being incorrect renders the rest of the variables worthless beyond an initial glance unless you're doing literally millions of trades as an institutional algorithmic trader taking advantage of scalping

>> No.54314557
File: 350 KB, 341x256, 1654143431756.gif [View same] [iqdb] [saucenao] [google]
54314557

>>54314522
I made a bold trade today, anon!

>> No.54314584

>>54314556
Fair point, but that's why I said that I rationalize it as the "missing" value in the BS formula that makes everything else correct. If you look at the difference between FMV and expected value, and IV vs HV you can tell if something is under/overpriced.
What are your thoughts on volatility surfaces?

>> No.54314599
File: 512 KB, 1652x1852, 1677455362005309.png [View same] [iqdb] [saucenao] [google]
54314599

>>54313691
I DID YOU ASSHOLE
IN NVDA

>> No.54314602

>>54314519
https://www.bridgewater.com/research-and-insights/an-update-from-our-cios-transitioning-to-stagflation

>> No.54314604
File: 105 KB, 867x383, msft-06apr2023.png [View same] [iqdb] [saucenao] [google]
54314604

>>54312412
>>54312804
I didn't realize it with the TSLA because it was close to the current price, but the MSFT was $8 below and I noticed when it switched between $272 and $280 every few seconds.
>Apr 6th is a full moon and Passover begins
Hm... let's see whether it does that again on Monday with the pre-market, then I'll screenshot a couple more tickers.

>> No.54314626
File: 312 KB, 1205x1122, 5d9ba83b83e562ac6180f46d2bab4f2b.jpg [View same] [iqdb] [saucenao] [google]
54314626

i wonder if i should go to the bar for food or eat leftovers. i lost alot today so i don't feel like spending, but i'm going on a diet soon regardless

>> No.54314637

Buying options, biggest dumb

>> No.54314670

>>54314599
You bought 0DTE's? Today? Of all days? When it has gone up all week? Do you also play the lottery?

>> No.54314685
File: 1.87 MB, 1072x1432, brokerfemaletype.png [View same] [iqdb] [saucenao] [google]
54314685

>>54314522

>> No.54314686

if buying options is dumb, then selling options must be smart

>> No.54314689

>>54314670
if it's a strong trend you have the best odds betting it'll continue
but i only buy one megamillions ticket on the regular

>> No.54314693

OK natgas Anons, remember I said that when I first bought into BOIL the quote for Jan 2024 was around %4.50, and it has since been adjusted down. Check these out, compare.

https://www.eia.gov/todayinenergy/detail.php?id=55539 (this report is from mid Feb)

https://www.cmegroup.com/markets/energy/natural-gas/natural-gas.quotes.html

Plot strategies accordingly. It is absolute fact that the peak of the next Winter has already been reduced in projection.

>> No.54314694

>>54314637
>>54314686
What if I buy AND sell options at the same time?

>> No.54314701

>>54314694
those are called spreads

>> No.54314705

>>54314434
Should watch fathead
Fast food ain't healthy, but the supersize me guy published a lot of bullshit and fathead calls it out

>> No.54314706
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54314706

>>54314694

>> No.54314717

>>54314689
I feel like that is the complete opposite of martingale logic. Are you sure you haven't exchanged one gambler's fallacy for another?

>> No.54314728

>>54314693
monday fren

>> No.54314736

>>54314717
it's a scalping strategy. you bet that you're not going to guess when a trend is going to change, but that the trend is strong and now's a good time to join it for a bit

>> No.54314743

>>54314693
natgas, oil, and coal your strategy is to buy in at a low point and hold and collect dividends. that's all that it is good for.

>> No.54314767

>>54314736
That makes sense.

>> No.54314786

>>54314584
I'm not really that well versed in options theory but I just read the investopedia on it. What do you want me to comment on about it? From a first glance to me it looks like the different volatilityt can be explained by market segmentation theory does for bond pricing: the short term volatility valuations are done by different market maker groups than longer term and so their results are different.

I basically only look at one option variable : Implied Volatility. I don't even look at historical volatility really. So I'm probably not the guy to be asking unfortunately. I mainly just do intrinsic valuation of a company and write put options on companies where the IV is higher than I believe is correct at a strike price that is reasonable. And the reverse for buying calls. I dont buy puts or write calls

Plenty of companies don't have any option liquidity that I look at, so options aren't really my main focus.

>> No.54314787

>>54314767
it's not just that, commodities are easily manipulated. The climate change shit is so they can sell high, and then rebuy at the bottom and ride the gravy train again.

>> No.54314801
File: 373 KB, 745x680, 1674843210497730.png [View same] [iqdb] [saucenao] [google]
54314801

Enough shitcoins on the main page...how do we take advantage of all these bank failures at this point? I missed shorting and puts on the ones that existed already, finally got a bankroll to invest. Looks like it's too late.

>> No.54314815

>>54314801
Just invest in NTDOY. We have Mario movie on April 4th and the Orlando Florida amusement park summer of this year

>> No.54314829

>>54314786
Well just the same I appreciate the response.
My thought was that you use IV as a proxy for price/demand and plotted it on a 3d graph, you would be able to spot any spikes/deviations from the expected values.

My next thought is that I can download the .json of a symbol's entire option chain off Yahoo, then parse it to get the IV for each possible contract. Then I'd run some numbers and see how much each IV/price different from the FMV/model, and then look at the ones that have 2-3SDs of deviance on it

No idea if that'll work it's something I can work on for a few weeks

>> No.54314836

>>54314547
See
>>54314433

>> No.54314841
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54314841

Who here eating /latenightdinner/? For me it's Marco's, because they are across the street from me and I'm lazy. My back was so fucked today my zoomer employees told me to take off early today and they would finish up. It pays to be nice to your employees.

>> No.54314842

>>54314815
>tfw you have 100k invested into a company and they start sending you love letter mail to make you feel important to them before you pull out your money and invest in their competitor
why I live.

>> No.54314846

LFLY

WHY IS MY FUCKING STOCK DOWN 99%?

>> No.54314848
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54314848

I'm sorry. I misspoke during the FOMC. 50 bepis.

>> No.54314854

>>54314841
i decided on leftovers. my potroasts are pretty good

>> No.54314861

Anyone else thinking there will be more rape hikes this year after the two trillion for banks thing?

>> No.54314864

>>54314854
I would have never opted for goyslop if I had groceries. I literally have not one food item in my apartment kek. I really need to go grocery shopping tomorrow.

>> No.54314865

HE SPEAKS
https://twitter.com/michaeljburry/status/1639461017309544452

>> No.54314866

>>54314846
>Zoom out
>It was a SPAC
Many such cases.

>> No.54314868

>>54313825
>>54313838

>> No.54314873

>>54314786
>I dont buy puts or write calls

Should be the opposite. As a general rule, the IV of calls tend to decrease as the underlying stock price moves up, while the IV of puts tend to increase as the underlying stock moves down. So going long on calls has a better chance of getting IV crushed than going long on puts. You can think of it the exact same way as how the S&P falls when the VIX goes up and vice versa. Volatility is generally associated with falling stock prices. If you're going to just choose one or the other, you should be shorting calls with high IV Rank, and going long on puts with low IV Rank.

>> No.54314880

>>54314861
they have to control inflation or they risk losing developing countries to brics.

>> No.54314885

It's my board, I'm sorry you are too lame to keep attention, but stay in your containment threads, Brett, thanks.

>> No.54314888
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54314888

>>54314841
Based. I had pizza tonight too. I always joke around with my zoomie underlings at work (concrete crew), they talk shit but would take a bullet for me. People skills pay dividends.

What's in the wrap?

>>54314815
Maybe. I just feel like I'm missing something big. Another bank collapse? I thought NYCB was next to rug?

>> No.54314893
File: 11 KB, 522x255, McInflation.png [View same] [iqdb] [saucenao] [google]
54314893

>>54314868
Christ, my retard ass forgot the pic

>> No.54314899

>>54314866
My sister put $2000 into RIVN the week they ipo'd

>> No.54314915

>>54314846
It'll recover. It only needs a 9,900% gain.

>> No.54314916
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54314916

>>54314864
I live next door to a grocery. i've gotten way better at cooking this year.
i wish we could go 24hr again

>> No.54314924
File: 113 KB, 1200x900, D2NpKQ9WoAEGzxy.jpg [View same] [iqdb] [saucenao] [google]
54314924

>>54314801
I would recommend selling a butterfly spread on a bank stock or two. The premium would be good and since it could go up or down violently you'd be good either way.
Just pray it doesn't just go sideways during the trade.

>> No.54314933

>>54314829
The fallacy in all this is past cant predict future. You have to eventually do some guess work on risk analysis regarding the micro environment of any sector. I.e. social political postering (boycott), internal firm fraud, death of board members, scandal in news.

>> No.54314934

I need some guidance for leverage on futures trading. One futures contract on natural gas is worth 1000x the cost of the contract, right? So if I buy 3 contracts at $3.30, that's a $10k investment. If those contracts go up to $5, my investment will grow to $15k.

Am I correct? If so, let's say I want 2x leverage, so that my three $5 contracts are actually worth $30,000. How do I make that happen? Just invest double my capital with margin from the brokerage?

>> No.54314951

>>54314728
???

>> No.54314953

>>54314846
Oh yeah, marijuana marketing is super not okay and both LFLY and MAPS promote illicit market dispensary’s. If you wanna invest in cannabis you gotta do your research. It’s the toughest game out there right now: but to the victor will got he spoils.
>TLRY
>GTBIF
>MSOX

>> No.54314962

fug I feel like a child trying to keep a secret, but I have been patiently sitting on this one so I can buy in as cheap as possible, but I ain't saying shit until monday when I have secured mine.

>> No.54314965

>>54314899
I'm still bagholding AVPT from 2021. Everything I sell moons afterward so I refuse to sell this at a loss. I've already accepted that the warrants could expire worthless in September 2026. I still think could be acquired though.

>> No.54314966

>>54314873
IV in this case only matters in the initial purchase. If it gets above break even at expiry price who cares. And it's a lot easier when IV is pricing a breakeven lower than I predict.

Also, shorting companies is a lot harder since shitty companies can stay high priced for a long long time. Gnerally well performing companies will always rise.

>> No.54314968
File: 666 KB, 666x666, 1633486076138.png [View same] [iqdb] [saucenao] [google]
54314968

>>54314888
Chicken club sub. My zoomer crew are great but they are all basket cases. 2 out of my 4 employees suffer from crippling depression. Had to literally pull one aside today because I could tell he was about to cry from shit going on in his life. Was able to talk him off the edge. Zoomers dont understand that they have merely adopted misery. I was born in it, molded by it.

>> No.54314973

>>54314934
post the symbols you're talking about. most future options show what $ goes up per point

>> No.54314976

>>54314962
It's NVDA, isn't it?

>> No.54314982

>>54314899
At least rivian is a real company. Could've put that money into NKLA or some shit, or GOEV, or RIDE. lmao.
Plenty more too.. WKHS. LCID. HYLN. QS.

Actually I guess there's no difference. Real or fraud, they're all down 90-95%.

>> No.54314983

>>54314962
>You are a child and I have a secret too
>and yes it’s cooler than yours
>I can tell you
>but I’ll have to charge

>> No.54314985

>>54314976
no, I am a real person and not a NEET

>> No.54314993

>>54314968
Stop abusing drug addicting teens

>> No.54314995

>>54314916
The 24 hour grocery store death I've never truly recovered from. By the time I get out of work nothing is open in my little town. I literally have to settle for gas station snacks if I don't have food at home.

>> No.54314996

>>54314983
I'm gonna give it to you for free, but loose lips sink ships.

>> No.54315001
File: 14 KB, 180x240, ted.jpg [View same] [iqdb] [saucenao] [google]
54315001

>>54314968
I think it's fucked up to NOT have depression. I mean if this world seems normal to you then WTF?

>> No.54315004

>>54314433
>>54314836
Ah, found that here, very much appreciated:

https://www.gasalberta.com/gas-market/market-prices

>> No.54315005
File: 783 KB, 1024x776, doesnotcompute.png [View same] [iqdb] [saucenao] [google]
54315005

>>54314976
NVDA is a good company -- they are the only ones who can do the AI stuff, and you know all the big boys will be going hard into it - but its just so overpriced right now. Due for a correction, and then slowly make its way back up.

>> No.54315017

>>54314973
Ah so the leverage comes from trading OPTIONS on futures? Not from straight up buying the underlying? It works the same as stock options leverage then?

I want to trade NGZ23.

>> No.54315022

>>54314968
I am become misery

>> No.54315038

>>54314924
Butterfly spreads work best in moderately sideways trending environments though.

>> No.54315040

>>54314916
Living across the street from a supermarket really screwed with my planning. Why plan for meals when I can walk over to the store and get the ingredients day of? Also all the stores near me are basically back to 24 hours. The hours are something like 5am to 2am, with that 3 hour restocking break.

>> No.54315064

>>54315005
Yeah, the price action feels like TSLA back in the day. Detached from reality.

>> No.54315074

So is the bear market over?

>> No.54315077

>>54315001
My black employee is definitely depressed over the state of the world. He thankfully can see through all the gaslighting and knows we are truly in clown world. The other one is depressed because he feels trapped. He's in a relationship with a girl (who also works with me) and she treats him like human garbage. She's an absolute sweetheart to me, but i'm her boss so she has to anyway, He doesn't have a car and works two jobs. He doesn't feel like cutting and running is an option. I basically told him if he feels trapped just run away. Quit your jobs, pack your shit, and disappear. Get a fresh start somewhere else. But he's young and dumb. He'll learn as he goes.

>> No.54315089
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54315089

>>54314934
You need to look at the minimum price fluctuations and your broker's minimum margin maint requirements. https://www.cmegroup.com/markets/products.html will give you what you need to know about pricing. Maint requirements depend entirely on your brokerage and holding periods.

>> No.54315107

>>54315017
no no, i think future options is an old naming convention.
https://www.cmegroup.com/markets/energy/natural-gas/natural-gas.contractSpecs.html
NG has a $10 per 0.001 price change, you should know that's heavy leverage and it's a physical delivery contract

>> No.54315108

>>54315074
I don't know. We should at least wait a couple weeks for the next CPI report before calling it over.

>> No.54315109

>>54315077
>My black employee
How's his fucked up skin issue? Do you ever run into the non crack smoking crack whore anymore?

>> No.54315116

>>54314965
Ever thought about averaging down and/or selling options against them? Might as well try to lower your cost basis in a safe way that offsets some of the cost.

>>54314933
That's why I think etfs are (generally) better to do than individual companies, since you remove several types of risk (though you'll introduce a few others, but it's free diversification).
I've mentioned pairs trading a few times itt, but haven't figured out a solid plan for it either, though I imagine it'll be etf based for the most part.

>>54314995
Shit nigga, buy some rice or something. Cooking for yourself is cheaper and healthier than eating goyslop. Eating out is even worse, I think I only grab a sub once or twice a month at best now.
I'll happily shill this channel since I picked up a good amount of cooking tricks from it.
https://www.youtube.com/@epicurious

>>54315001
Nobody knows what the point of life is, anon. You can take that as a blackpill in that life doesn't matter, or as a whitepill which means you're free to live on your own terms and find your own happiness. Some people are happy working 9-5 every week until they're 65 and retire. No fun in that, you could die any given day and if you haven't had a chance to enjoy things on your own terms, then what's the point? Similarly, I feel that if you don't reproduce, you have failed as an organism, since your genes will not propagate.

>> No.54315118
File: 146 KB, 516x336, fb4faf1e-add5-4fbe-a89c-f87532844ccf.png [View same] [iqdb] [saucenao] [google]
54315118

>>54315040
why plan? you can cook fresh/er

>> No.54315137
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54315137

>>54315038
If you buy a butterfly yes, HOWEVER if you sell one the way it works is reversed.
Basically it just can't be within a range, has to be outside of it to work.

>> No.54315141
File: 18 KB, 471x341, Marlow-Cano-Strong_reduced-1.jpg [View same] [iqdb] [saucenao] [google]
54315141

>>54314866
I remember when the CEO of CANO took out a margin loan to buy more shares of his company around $10-$12. It's around $1 now.

>> No.54315156
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54315156

>>54315040
>>54314916

I used to live literally above a safeway open to 1am. For late night snack runs or w/e it's extremely based, however the larger problem most grocery stores have is that they are not Costco, which brutally mogs all others on any cost comparison. Safeway in particular is pita with their coupon bullshit. Why put up with it when I can just get everything 30-40% cheaper per unit?

I want to invest in an apartment over a Costco.

>> No.54315169

>>54315109
He still dresses like a muslim woman so I'm pretty sure his skin issues are still there, but he definitely seems to have improved with proper treatment. He's a good guy, went to help at a homeless shelter today before he came to work. Me and the crackwhore employee never spoke again after I fired her. She didn't even fight for her job. She was on drugs the entire time and somehow I never noticed. It makes sense now. The zoomer employee she recommended to me still works for me and he said she never stopped doing meth and is always meth'd out. Which makes perfect sense why she was such a piece of shit at the main building, and was always strung out, and did terrible work. But when she went to the other smaller building alone she was getting nothing but compliments. She was clearly getting high in the parking lot and cleaning the fuck out of the building because she was tweaking. Should have fired her the first week after hiring her.

>> No.54315172

>>54315107
Thanks for bearing with me. Please confirm my understanding of the link you sent:
>buy 3 contracts for $3.33 (as in my prior example)
>my investment is now 3 * 3.33 = $10k.
>those contracts go up to $5, a $1.67 change
>i made $1.67 * (10 / .001) = $16700 profit
>my investment is now $26700

Right?

>> No.54315176
File: 128 KB, 1228x788, iib.png [View same] [iqdb] [saucenao] [google]
54315176

>>54315137
Dumb question, but why sell a butterfly with like 30 dte, and 2 weeks later, the price has moved, so you sell another butterfly with 30 dte?
This has more than a 70% success rate, and the profit doesn't look too bad

>> No.54315185

>>54314966
>IV in this case only matters in the initial purchase

Brainlet take. If IV declines dramatically while you are holding a long options contract, your option contract is losing value. Sometimes so bad your trade will break even or even lose money despite the underlying stock moving in your direction or has moved past its break even price. IV is always in play, no matter how great your trade has started off.

>Also, shorting companies is a lot harder since shitty companies can stay high priced for a long long time.

This is not how selling premium on option contracts works. There are a variety of factors at play to determine whether its a good idea to sell premium than just whether the underlying stock moves in a certain direction, such as time decay and IV. When selling premium, time decay and declining IV actually works in your favor on this side of the trade- stocks also tend to move up at a slower pace than the speed at which they drop down, meaning it would take more time and effort for the underlying stock to cross your short strike price when selling calls. And as I said earlier, IV declining is a lot more common on rising stocks (call contracts) than it is on falling stocks (put contracts). This makes selling premium a lot of more attractive on calls than it does on puts, the odds and the greeks are far more in your favor. Even if the underlying stock approaches closely to your strike on a written call, if time decay and volatility have destroyed the contracts enough, you can buy your written call back for dirt cheap at a massive difference from when you first sold it and just close the trade for a massive profit. You need to read up a lot more on options, you are newbish af.

>> No.54315191
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54315191

>>54315176
Slight problem there you have,
Make it all puts and play with it to make it a credit. Also not all tickers are good with it, some will produce outsized credits and others like SPY won't give much.

>> No.54315194

>>54315169
>He still dresses like a muslim woman
Thought you were talking about Trudeau for a minute

>>54315156
>Live above a shopping center
That's a certain kind of kino

>>54315141
Stock buybacks are good, but not when they do it that way. WMT has been pretty consistent for me and I hope they don't fuck around with the buyback laws

>> No.54315196

>>54315141
Looks like he may have gotten away with it but the stock shit the fucking bed and got absolutely heemed last fall. Besides slightly lowered guidance it looks like it was due to rumors of CVS Health or Humana buying them out being squashed.

>> No.54315199

>>54315169
Aaaaah, meth...yep. I have never done it and never will, but have worked with people on it, and ran into people on it, and in some cases seen where people around them had no idea that's what was happening until it got to a certain point.

>> No.54315201

>>54315116
>I feel that if you don't reproduce, you have failed as an organism, since your genes will not propagate.
This is genuinely my biggest regret in life. My entire life I I was seriously against having children. Now that i'm 35 and have more or less did everything I want to do, I wish I had somebody to take care of, spoil, and share experiences with. Oh well, maybe in the next life.

>> No.54315207

>>54315185
>IV declining is a lot more common on rising stocks
Suppose a stock has a normal IV of like 60%, then it spikes to 250%. How do you know it hit the top range and isn't going to become a meme stock like BBBY and hit up to 400%+ IV on some contracts?

>> No.54315214

>>54315172
so the margin requirement is $3300 per contract right now?
you're buying dec futures, which might be better if you hope to hold for the long term, but that has very low volume. you will not be able to close out as quickly as you like, and the spread will be worse. meaning you have to pay more to get in and lose more when you want to close
i wouldn't jump into a high-leverage contract you don't have an understanding of and hope that it'll hit your price targets.
too many things are happening right now, and you might find better places to put your money between now and dec

>> No.54315221
File: 281 KB, 1564x828, 43562342.png [View same] [iqdb] [saucenao] [google]
54315221

>>54315176
>>54315191
Pic related

>> No.54315233

>>54313939
Those were the days senpai. I ate 2 mcdoubles with a drink for lunch everyday for about 4 years. $3.25 American, tax included. I bought 2 mcdoubles earlier today, $6.80 no drink

>> No.54315239

>>54314873
that's the game theory on selling covered calls, correct?

>> No.54315247

>>54315191
I just popped it into a visualizer. What's the benefit of doing a short put butterfly instead of a normal inverse one? You get roughly the same P&L at the end of it and the greeks look more or less the same.
Does it affect margin requirements? It looks like you can sell as many as you want

>> No.54315248

>>54315233
$5 was always the standard for a value meal growing up. You could get a large big mac meal for $4.99. Luckily they do a good job bringing prices down by using the app at least.

>> No.54315250

>>54315214
>so the margin requirement is $3300 per contract right now?
Okay, this is what I was missing. Now I understand. Thanks for your advice. I'm not going to jump in with all my money, just $10k to learn how it works.

>> No.54315260

>>54315207
Easy answer. I dont go long on option contracts with an IV Rank above 40% at the very most, especially if I'm going long on calls. And preferably I would prefer my IV Rank to be even lower. Plenty of other underlying stocks out there where options IV Rank is between 0%-25% to risk gambling going long on options with a 50%+ IV Rank. I also wouldnt be trading volatile meme shit stocks like BBBY to begin with.

>> No.54315272

>>54315221
Okay I see, the chart actually looks more profitable way sooner. I usually look at the graph and ignore the chart.
It seems that as soon as it drifts into profitable range, you can immediately close it, according to the chart.

>> No.54315273
File: 19 KB, 384x395, 1322798589001.jpg [View same] [iqdb] [saucenao] [google]
54315273

>>54315233

>> No.54315274

>>54315074
Think we're in for at least another month of crabbing, then Sell in May will dictate the next trend

>> No.54315283

>>54315260
I know for leaps you want to do a deep itm call to avoid theta decay, so suppose you had something like WMT with a low IV and low IV rank, would you write a short-dated covered call against it if it happened to spike suddenly, eg earnings?

>> No.54315285

>>54314962
It is midnight. Tell us! That's what weekend /SMG/ is for

>> No.54315289

>>54315239
Selling covered calls is completely different. The scenario I was talking about involves holding none of the underlying stock, selling the call options either naked or with protective cheap long call options wings, and thus makes the play 100% Bearish. If you are holding the underlying stock, such as when selling covered calls, you are moderately bullish up to your short strike price, or you are holding a stock you know is going down and are selling calls against it to bring in some extra money as your stock declines.

>> No.54315292
File: 69 KB, 636x714, 1648573524308.jpg [View same] [iqdb] [saucenao] [google]
54315292

>>54315272
Yup, plus if it bounces around for a while Theta is your best friend. Bonus points if it's an index like the VIX since there's no early exercising of the contracts.

>> No.54315318
File: 73 KB, 683x682, Screenshot from 2023-03-25 00-17-26.png [View same] [iqdb] [saucenao] [google]
54315318

Respect to the one SPAC that never dipped below their merger price.

>> No.54315333
File: 118 KB, 378x357, 1611857101004.png [View same] [iqdb] [saucenao] [google]
54315333

To whichever anon in the last thread was talking about volatility decay in the last thread occuring in a manner of hours, you're completely fucking wrong. Volatility decay only occurs when a fund is rebalanced which in the case of triple leverage is usually daily. The same way that volatility decay on a normal stock price is only done daily. There are also funds that rebalance on longer term scales. There's a 2x spy fund that rebalances on a monthly basis but remember that you need to be able to not drop more than 100%/(leverage) in the rebalance timeframe otherwise the fund will bankrupt and you're btfo.

>> No.54315346

>>54314637
broker wont let me sell enough options

i need to go all in buying options to uh, live.

>> No.54315363

>>54313674
>been out of the market for about a year
Is it finally time to come back? Any nonjewed brokerages or trading accounts? I had nothing but bad experiences with jp morgan

>> No.54315367

>>54315292
Is that because VIX is cash settled, or because its euro styled? Eg would a similar strat work on SPX?

>>54315333
>Rebalance timeframe
Thanks that was good to know. Wondered why some anons were (potentially over)confident about how eg TQQQ would never bankrupt because circuit breakers. Really does come down to DD

>> No.54315372

>>54315333
>you're completely fucking wrong
No u. Volatility decay occurs when a swing up from a dip doesn't bring returns to the same percentage as the dip despite the level of the upswing matching, and that's exactly what happened in real time right in front of my eyes. To begin with, when it would get back to my buy in point it I would be in the green, but as the crabs repeated it would take increasingly lower (as this was an inverse) levels below my buy in before it was back in the green. So again, volatility decay occurs when you have a swing in one direction and an exact percentage swing back does not bring your underlying profit point back to where it had been before at that same level.

>> No.54315377

>>54315185
Nothing you said is new to me. You just dont understand buying calls is leverage with a smaller purchase price and no margin.

IV going down after you buy an option before expiring above your break even is the same as buying a stock that goes down after purchase but eventually turns a profit

>just time the perfect bottom of IV and price before buying, bro
yeah i wish

>> No.54315379

>>54315283
I wouldnt personally, no. First of all, playing earnings, especially with options, is a bad idea. Second of all, IV tends to rise BEFORE an earnings announcement and then rapidly drops (IV crush) AFTER the earnings announcement. IV builds in ACTINCIPATION of a large move coming up in the near term, not from the actual large move itself. So the correct move, if you were to play earnings, is to go long on an options contract well in advance of earnings before the IV begins to rise, then as earnings approaches you are accumulating value in your options contracts through Vega as the IV starts to increase in anticipation of the earnings announcement- then you sell your options contracts for a profit at the peak of Vega IV accumulation just before earnings is announced and the large move is made.

That being said, with regards to selling options though, whether your calls are covered with shares of the underlying stock or not, selling premium is best done only on options with a high IV rank, as you are selling the contracts while they are at their most expensive so you are raking in maximum credit (while at the same time, the chance of the IV Rank declining in your favor after the options are sold are much better in your favor- so you can buy the options contracts back for cheaper than what you sold them should the underlying stock move against your short strike price).

To simplify things with IV rank and buying/selling options, the case of "buy low and sell high" and "sell high and buy low" remains as true as it does for buying and selling shares of a stock.

>> No.54315386
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54315386

>>54315372

>> No.54315403
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54315403

>>54315367
>Is that because VIX is cash settled, or because its euro styled? Eg would a similar strat work on SPX?
The VIX, NDX, RUT, SPX, and XSP are all cash settled Euro style options. So in practice, this works on all of them but not all have ideal risk-reward ratios. However they can have odd options pricing which can give more credit than the net risk which for an options seller it's ideal.

>> No.54315406

>>54315386
I literally spent hours watching it crab over the same range of pennies and there it was, so whatevs.

>> No.54315423

>Optionsfags
>Futuresfags
>LETFfags
>The volatility of the volatility of the volatility of the volatility of the volatility of the volatility of the volatility of the volatility of the volatility of the volatility
We're nowhere close to the bottom.

>> No.54315424

WHEN WILL THIS CRAB END GOD DAMNIT I WANT MEMES BACK

>> No.54315427

>>54315318
If you've ever had zapp's voodoo chips, you'll know why Utz is holding strong.

>> No.54315439

>>54315427
I always get the Zapps Voodoo when I go to PBPB

>> No.54315440

>>54315377
If you go long on a call with a high IV that declines after your purchase while the stock is moving up, the chances of your IV recovering is not in your favor as Bullish stocks tend to not build up IV as much as Bearish stocks. If the IV declines a lot, you are at severe risk of getting IV crushed and putting yourself at a severe loss.

>yeah i wish
It really is that simple though. This is what IV Rank and IV Percentile are for. Dont go long on options when IV Rank/IV Percentile is above 50%. Boom, you just reduced your chances of getting IV crushed significantly.

>> No.54315446

>>54315379
That's more or less what I think I knew, but it's good to have confirmation from someone that knows what the fuck they're doing.
Also, how can you backtest an options strategy? It seems like few places keep free historic option data, so forward testing is my best bet

>> No.54315447

>>54315423
Any good divvy stocks that will survive the crash and be worth buying at the bottom?

>> No.54315455
File: 494 KB, 658x623, 1679445117128798.png [View same] [iqdb] [saucenao] [google]
54315455

what are we buying tomorrow?

>> No.54315457

>>54315455
A new computer mouse, this one's fucked

>> No.54315471

>>54315457
i bought a logitec g20 or some shit and it only lasted a year before it started double clicking and scrolling weird. now i have a deathadder but the school wheel is making squeaky noises already. why is nothing made to last a long time?

>> No.54315478

>>54315455
A $5 bag at Wendy's.

>> No.54315481
File: 20 KB, 788x699, 1616983373767.png [View same] [iqdb] [saucenao] [google]
54315481

>>54314962
noonstork

>> No.54315491

>>54315439
Literally the best chips in existence

>> No.54315493

>>54315478
you know the saying, you get what you pay for, inflation adjusted.

>> No.54315494
File: 614 KB, 2053x3000, 1679697235093830.jpg [View same] [iqdb] [saucenao] [google]
54315494

>>54315455
An Avril gf.

>> No.54315503

TCS
The Container Store
They are building a bunch of new stores, Berkshire Hathaway bought some of them to get cheap closets. Their most profitable area, they want to double revenue by next year. They just started their second store to get the plans dialed in before building a shitload of stores
New CEO has good history with growth companies

>> No.54315505

>>54315446
>Also, how can you backtest an options strategy?

Unfortunately, none of the tools for this are free, as least the ones that I know of. Better to just paper trade, and then dip your toe in the water with a small amount of cash before you start going all in.

>> No.54315511

>>54315503
>building a storefront in this economy
Good short potential, thanks

>> No.54315512
File: 940 KB, 1021x1356, PXL_20230325_043928874~2.jpg [View same] [iqdb] [saucenao] [google]
54315512

>>54315457
I'd highly recommend getting a vertical mouse. It's a lot more natural for your arm and you'll find your wrist hurts less.

>> No.54315522

>>54315512
>playing with a dildo all day
let me guess, you wear programming socks too

>> No.54315524
File: 440 KB, 500x742, 1525082905028.png [View same] [iqdb] [saucenao] [google]
54315524

>>54315372
Read a fucking book nigger.

The price of the fund is only calculated once daily when they restock the cash swaps that power the leverage. You clearly have no idea how this works. There's a great article out there on this somewhere but i'm not doing the work of finding it for you.

>> No.54315529

>>54315493
That's the best deal in all of fast food, $5 for a dang good double stack, 4 nuggets, fries, and a drink (I get chocolate Frostie). It's pretty rare that I ever eat fast food or any restaurant food so it's just a splurge I do sometimes.

>> No.54315546
File: 531 KB, 2782x1504, natural-gas.png [View same] [iqdb] [saucenao] [google]
54315546

@/smg/
use this website to inform yourself better on natural gas / BOIL so you stop hammering yourself in the dick
https://agsi.gie.eu/
you're welcome
P.S:
>Unless a late cold snap emerges, net injection season in Europe started at its 2nd earliest point in a decade in 2023. Gas storage is already at an all-time high for March. Stocks can be full by Nov. 1 at 68% of normal injections. At 100%, stocks will be full by Aug. 4.

>> No.54315548

>>54315524
Why would I need to read when I could see it happening right in front of my eyes. I bought in when BOIL was 2.18, and the first times it swung back below that I was green, but as the day went on it kept creeping to needing to go slightly lower and lower before I was in the green again, it's as simple as seeing that right then and there.

>> No.54315552

>>54315505
I lost $3000 in bad options trades last year, due to various factors, such as fomo, playing ERs, buying OTM calls for certain delta exposure, etc.
$200-$300 a loss really adds up.
Also I'd say about $1100 total or was due to VIX as a hedge, but even a far-dated (eg 2024) lost like 70% of its value in a few weeks.

>> No.54315559

>>54315440
I just dont think you understand, you use IV as your value indicator. I use something else to get a price target. When I see a company safely below my price target then I buy, and if I think it could vastly exceed the price target then I buy calls.

>> No.54315564

>>54315524
>>54315548
And the same thing happens with the swings in natural gas futures compared to BOIL fluctuations, it doesn't wind up being a lockstep 1:1 as it swings, and the wider the swings, the shittier it gets in that regard.

>> No.54315578
File: 43 KB, 600x440, b83e3e944ef2c45af9de52260ebfe64d.jpeg.jpg [View same] [iqdb] [saucenao] [google]
54315578

>>54315424
we have crab memes

>> No.54315581

>>54315559
>When I see a company safely below my price target then I buy
Are you doing fundamentals to see if a company is over/under valued? How do you determine your price targets?
I like to trend trade on the daily using NNFX methods, or at least would like to. I usually use a batch of indicators, but don't have an exit point defined yet, usually I move a trailing stop along the way once I hit my TP.

>> No.54315586
File: 252 KB, 375x523, 1624829645519.png [View same] [iqdb] [saucenao] [google]
54315586

>>54315578

>> No.54315593
File: 241 KB, 751x563, 1679441602396435.jpg [View same] [iqdb] [saucenao] [google]
54315593

>>54315424
>>54315578

>> No.54315595

>>54315512
I tried one of those and went back to regular shape. Mine had buttons that required a bit of force to push and in order to push them I needed to squeeze the mouse otherwise it would slide left. Wasn't comfortable.

>> No.54315599
File: 10 KB, 212x150, ASS.png [View same] [iqdb] [saucenao] [google]
54315599

>>54313820
I think there will be a small monday-tuesday on bump uranium stocks towards the daily 18ema. before ultimately finding a low soon afterword, likley lower. wherever that may be. specifically DYLLF and UUUU. but who knows id like them to just crash and get it over with so we can go gigalong

>> No.54315601

Heres a better idea. Dont buy BOIL, dont gamble on natural gas, dont gamble on commodities at all.

>> No.54315605
File: 113 KB, 500x375, 1673490806529693.png [View same] [iqdb] [saucenao] [google]
54315605

>>54315424
The Crab is mumus secret ally

THERE WILL BE NO CRASH

I WILL NOT ALLOW IT

>> No.54315614

>anons still longing uranium
Just 40 more years!

>> No.54315620

>>54315559
>you use IV as your value indicator

When selling premium, yes. Why would I, or anybody else, sell premium for bottom of the barrel shit credit on low IV options? Anybody who sells premium for a large bulk of their trades is doing so on high IV options. And because high IV tends more often than not to be a Bearish indicator, I would be selling calls more often than puts. Get it now?

>> No.54315624

>>54315614
Nice, 10 years under what my time horizon is!

>> No.54315626
File: 1.65 MB, 2700x3600, steven-pinker.jpg [View same] [iqdb] [saucenao] [google]
54315626

>>54315599
ass

>> No.54315635
File: 58 KB, 1034x788, Capture.png [View same] [iqdb] [saucenao] [google]
54315635

>>54315626
AZZ

>> No.54315636

>>54315601
You win by not losing
However, I think commodities (particularly silver and copper and uranium) are great long term investments, though you'll probably have to hold 5-15 years

>> No.54315640
File: 106 KB, 600x900, 1679699407974902.jpg [View same] [iqdb] [saucenao] [google]
54315640

This is going to make 1929 look like a fond childhood memory.

>> No.54315648
File: 94 KB, 740x493, D5F3A029-DE1E-464F-8CB2-5A9E6F36CF00.jpg [View same] [iqdb] [saucenao] [google]
54315648

>>54315626
Who is this ass?

>> No.54315650
File: 401 KB, 1079x1494, Screenshot_20230325-045600.png [View same] [iqdb] [saucenao] [google]
54315650

It's not QE

>> No.54315659
File: 1.19 MB, 1280x720, crab.webm [View same] [iqdb] [saucenao] [google]
54315659

>>54315578

>> No.54315675

QE more like Poo Pee.

>> No.54315676
File: 100 KB, 1472x897, WALCL 3-23-23.png [View same] [iqdb] [saucenao] [google]
54315676

>>54315650
J Powell said the same thing on Wednesday

>> No.54315691
File: 87 KB, 693x584, Futures contract specs.png [View same] [iqdb] [saucenao] [google]
54315691

How the fuck am I supposed to store 1,000 barrels of Russell Futures?

>> No.54315692

>>54315650
>Just take my toxic assets that I don't want back
>so I can hit the reset button and gamble with fresh USD

>> No.54315705
File: 169 KB, 1367x800, US Treasury Yield Curve 3-24-23.png [View same] [iqdb] [saucenao] [google]
54315705

Yields....

>> No.54315707
File: 427 KB, 1536x1964, 75ABCF80-81CF-4F75-ACBF-8BF603A7FD18.jpg [View same] [iqdb] [saucenao] [google]
54315707

Banking*

>> No.54315714

>>54315705
you should make a time lapse webm.

>> No.54315720

>>54315581
Discounted cash flow models mainly. If the optimistic DCF is much higher than your conservative DCF, then you can buy calls. I like doing that because most of my money is just in the s&p 500, so call options make the time invested in analysis worth it. Depends on the stock though

>> No.54315727

>>54315714
I ll do that when rates are cut and the curve is back to "normal"

>> No.54315731
File: 243 KB, 800x569, 5d7lrj.png [View same] [iqdb] [saucenao] [google]
54315731

Shit, piss, fuck, cunt, cocksucker, motherfucker
Tits, fart, turd and twat
Shit, piss, fuck, cunt, cocksucker, motherfucker
Tits, fart, turd and twat
Shit, piss, fuck, cunt, cocksucker, motherfucker
Tits, fart, turd and twat
Shit, piss, fuck, cunt, cocksucker, motherfucker
Tits, fart, turd and twat
I fucked your mom

>> No.54315748

>>54315727
I havent been keeping track of how its changed. What website is the data from?

>> No.54315750
File: 152 KB, 1125x1110, 71ibzl28j4051.jpg [View same] [iqdb] [saucenao] [google]
54315750

>>54313980

REITs are the next thing going down after banks due to the crazy interest rates. Housing is in for some shakeups for sure. I'd get out asap.

>> No.54315758

>>54315750
Will hardware and home improvement stores tank when the housing market does?

>> No.54315761

>>54315640
>The face of a madman. A sick, deranged, fax-machine-loathing madman.
>And your next Fed Chair.

>> No.54315764
File: 83 KB, 1445x766, Screenshot 2023-03-24 at 22-11-07 US Treasury Yield Curve.png [View same] [iqdb] [saucenao] [google]
54315764

>>54315748

Here is how the month went

https://www.ustreasuryyieldcurve.com/

>> No.54315774

>>54315764
Lower yields? Bullish for stocks!

>> No.54315784
File: 1.12 MB, 793x907, 1676531118838531.png [View same] [iqdb] [saucenao] [google]
54315784

LUCKY 7S

>>54315777
>>54315777
>>54315777
>>54315777

>> No.54315786
File: 379 KB, 1445x1589, e724970e387e976ab540037ef50defee.jpg [View same] [iqdb] [saucenao] [google]
54315786

>>54315705
sex with yields poster!

>> No.54315792

>>54315640
I always think this is Christopher Guest

>> No.54315796

>>54315750
realestate pumped hard today that money wouldnt be back in if they thought it was getting worse

>> No.54315799

>>54315731
Been a good many years!

>> No.54316313

>>54315691
in your jimmies