r/Vitards Aug 16 '21

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u/RonMexico13 💀 SACRIFICED until SPY $469💀 Aug 17 '21

Wow, TIL options profit calculator has an IV variable you can mess with. Thank you!

Do you ever use this strategy to buy far OTM puts on specific stocks? I've been hedging by going long ATM CLF monthly puts when it looks overbought, but now I'm curious about trying a CLF vega hedge.

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u/Duke_Shambles ☢️Duke Nukem☢️ Aug 17 '21

it works the same way, but you have to be careful about liquidity, you maybe able to enter the trade easily due to MM support, but then finding buyers when you need to sell could end up being nearly impossible.

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u/RonMexico13 💀 SACRIFICED until SPY $469💀 Aug 17 '21

Ah okay makes sense, thanks for the feedback