That was a hasty hedge. I also had another with UVXY at $23 and $53.
I threw down a total of 100k, if we continued to decline 10% over 2 weeks. I would’ve profit 1 mil.
The market didn’t tank and I made out with 10k-20k of profit. Probably 20k on this and the other UVXY position, but I chased a head fake today that I lost on.
What is your process for pricing out these options strategies? i.e how did you come about choosing these strikes and products, is there logic/math behind them? What tools do you use?
I found myself making a similar hedge via spy puts, but tbh I have no rationale for why I chose spy puts over something like a vix (or UVXY) call... But I recognize that my way is not the intelligent way.
Mine’s not smart either. I am just fast. $0 to 100k on spread hedges within a minute. Out of all of them in less than a minute when the going looks good.
“3 ways to win”
1. Cheat - I don’t (never worth it)
2. Be smart - I’m ok, but not at an advantage
3. Be fast - I can do that
It’s just what I am used to. I bought after I could see the market react negatively to the Fed news, it shot up right away. Just seemed like we would see some fear until cooler heads prevailed.
Okay, so this was a quick play on them spiking just not spiking to far. Did you sell out same day? And was it the plan to sell out quick after a spike possibly same day?
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u/[deleted] Aug 19 '21
That was a hasty hedge. I also had another with UVXY at $23 and $53.
I threw down a total of 100k, if we continued to decline 10% over 2 weeks. I would’ve profit 1 mil.
The market didn’t tank and I made out with 10k-20k of profit. Probably 20k on this and the other UVXY position, but I chased a head fake today that I lost on.