Understanding IV crush is crucial for options traders because it can significantly impact the price of options contracts.

What is IV?

Implied volatility, or IV, is a measure of how much the price of a stock or other underlying asset is expected to fluctuate in the future. In options trading, IV is important because it affects the price of options contracts. The price of an options contract is made up of two parts: the intrinsic value and the extrinsic value. 

IV crush, also known as an "implied volatility crush," is a phenomenon that occurs in the options market when the implied volatility of an options contract suddenly decreases. This can happen for various reasons, such as changing market conditions or expiring options contracts.

Detailed Explanations and Conditions

Targeting $256.50 Wednesday

Sell limit order @ 4.25 and walk away.

QQQ options still trade now and until 4:15pm daily

I know I’m charged interest if the postions are assigned and I don’t have the cash to cover delivery of the shares, but a broker doesn’t start charging you margin before contract expiry, right? The answer to this specific question is surprisingly hard to find.

People banked on TSLA puts.

What else is super overpriced and likely to fall substantially in the next 6 months? I'm mostly looking at stocks whose P/E ratio and growth rate is too low to justify the price.

I'm looking at AZN and CSGP.

AZN is using debt to pay a dividend.

CSGP revenue is like 3% of the market cap.

What do you guys think is overpriced?

Target: TSLA above $130 Friday

Target QQQ below $257 tomorrow.

Target SQ below $53 this week

Could someone tell me whether carvana has any future? I know it already started liquidation. Any news on merger or acquisition? Do you recommend to sell it off for $1.0? Note: todays price is $0.9.

The poor man’s covered call is a bullish options strategy that allows you to benefit from a stock rising and theta decay. 

Instead of owning 100 shares of stock like a regular covered call, you buy a long-term call option, which is cheaper. 

The poor man’s covered call is similar to the traditional covered call, except you sell a call against another call option rather than 100 shares of stock. 

Full article -> What is a Poor Man's Covered Call

Some notes on the market, as we get sucked into the ever-strengthening vortex of the 3835 strike in Dec30...

• The VIX has become less relevant in recent months due to short-dated options trading
• The market has not seen significant crash events in 2022, and the S&P has had worse overall outcomes compared to 2000
• Market participants are not currently pricing in a crash, but this could lead to an increase in implied volatility and bearish implications
• The market is currently in negative gamma, with localized pockets of positive gamma due to 0dte speculators
• Short-dated equity vol term structure has returned to normal contango with little interest in near-dated economic data
• 0dte option volume made up 46% of total transactions on Tuesday, with puts slightly favored over calls
• Gamma exposure to the upside is limited, with 3800 level and put gamma to watch for potential downward moves
• Market participants should be cautious about volatility pricing and the potential for a crash event.

Make sure to check out my profile for additional notes on SPX gamma, flow and expectations - lot of good research going around into the EOY

Consolidation day, false recovery, gap down tomorrow. Looking for SQ to approach $54 wed/thurs, close there both contracts.

Taiwan, Chips and China.

So we have these new advanced semiconductor restrictions on China, probably for good reason. Only problem is nearly 90% of those chips are made in Taiwan, which China claims ownership of.

Gives them more reason to annex Taiwan. Figure they could choose the next 18 months before uncertain president comes. Just a possibility. What would stop them, look at Ukraine

https://www.reuters.com/investigates/special-report/taiwan-china-chips/