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September 2021 Trades
Already halfway through the month, but I'll start a new topic.
Looks like implied vol is really high right now. I'm selling far out of the money these days. The 9/16 options (settled at 9/17 at the open) have strikes far OTM, so I'm starting to sell the 9/17 options (settled at the close) already. 4200 strike has a price of 0.60, which is pretty good for a one-day trade. Implied Vol of 39% (!!!) and a Delta of only -0.0142. Both according to my own model, not the (often unreliable) IB values.
Why is the IV so high? I think folks are getting nervous about the FOMC meeting next week (Tue/Wed).
This might play a role in the elevated Vol as well: People getting nervous about a potential "Lehman Brothers" Moment in China:
Silence on such day?
Crazy pop on the VIX today and the highest since 5/12/21. I just sold a 4180 put for $6.6 at a 9 delta. Premiums are very juicy right now but of course we have to be careful with the strikes.
Wild ride down today, but it looks like most low delta puts from Friday weren't touched since the VIX was already at 20 then.