Posts
$700k in SMCI leaps ($300k profit)
Position: 420 contracts SMCI 25C 06-2027 exp Bought these contracts mid July when stock was trading at $25, at about $8.6 each.. stock has a pretty good 1- month run up.. now trading about $17 per contracts Kinda ITM right now and feel like there's still room to go up.. …
Most SPX 0DTE Traders Focus on Direction — I Focus on Where Price Is Unlikely to Go
A lot of 0DTE traders spend most of the day trying to guess whether SPX is going up or down. I don’t really trade that way anymore. What I care about more is: **where is price unlikely to go today?** That’s where GEX helps me. If I see a strong …
SPX one month premium at zero into NVDA, Jackson Hole, jobs, CPI and the Fed
Friday's close put SPX one month at the money implied vol at 11.8. Over the 30 sessions ending Friday (July 10 through August 21) the index realized 12.4, close to close. The options market is charging a little less for the next month than the index just delivered. That is …
Calculated fees for the three months: ~4% drag on PnL, pretty substantial.
I’ve just calculated mine. |Cost|% of gross PnL|% of capital, 3 months|Approx. annualized % of capital| |:-|:-|:-|:-| |Broker|1.5%|0.2%|0.7%| |Trading app|2.3%|0.3%|1.1%| |Total|3.9%|0.5%|1.9%| Over the last three months, I got double-digit return on capital in a low six-figure IRA account doing pure premium selling. The risk-adjusted metrics look good, too. I’m not …
Super Duper Cheap Calls - Who Buys Them?
Sometimes I am holding a quiet underlying, and seeing "bid $.0 ask $.25" will step into the breach and offer some calls for five or ten cents. I figure "It's beer money". I know conceptually that no option is riskless. OK, there could be a ratings announcement on the underlying, …
Andersen QE vs. Abi Jaber for Heston MC
I’m working on Monte Carlo simulation for the Heston model (option pricing) and currently using Andersen’s QE scheme as the baseline. I’ve also implemented the Abi Jaber polynomial scheme. On paper, QE seems more established and widely benchmarked, but AJ is cleaner and avoids regime switching. For those who’ve tried …
Gex Platform
How interested would people be for a new GEX platform that could possibly be cheaper than others in the market?? how many of you would actually subscribe? just trying to see what is the general consensus of gamma and its utility for traders
Trading earnings
Is anyone trading volatility around earnings events? e.g. selling short straddles if you think volatility is too high. If so, do you have any advice or playbook worth sharing? Which analysis tools do you all use? Thanks!
Free upcoming classes on long and short Boxes
The Options Institute is the educational arm of the CBOE. They offer a lot of free resources on trading. On August 25th and September 1st, they will be offering a class on Long Boxes and Short Boxes. Although these seem to be for more experienced traders, there's lots of stuff …
Using box spreads to earn an extra 9% a year on leveraged trading
I use IBKR and the margin rate is +1 -1.5% the standard rate which is about 6-9% a year on a x6 portfolio margin account. If you're a trader who utilizes tons of leverage then you're likely leaving money on the table by using your broker's margin rate. What is …