Forum

Policies – please read!

  • Everyone can read posts, but to start a new topic or add a reply you’d need to register. To create an ID, please verify your email address. You will get a link at that email address and you can then pick a password.
  • Be courteous to others. Treat others like you like to be treated. Discuss the issues. No ad-hominem attacks!
  • It’s OK to include external links if they are relevant. But please avoid spamming! Please no affiliate links.
  • Before starting a new topic, please check if that question/topic has been discussed before already and add to that discussion instead of starting a new topic.
  • If you’ve written a cool blog post that you want to share with others please post this in the “Self-Promo” category only!
  • Please read the usual Disclaimers and the Privacy Policy!
  • The forum policies may be amended in the future!
Notifications
Clear all

September 2021 Trades

Page 1 / 3

earlyretirementnow.com
Posts: 231
Admin
Topic starter
(@earlyretirementnowcom)
Member
Joined: 6 years ago

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). 

29 Replies
earlyretirementnow.com
Posts: 231
Admin
Topic starter
(@earlyretirementnowcom)
Member
Joined: 6 years ago

This might play a role in the elevated Vol as well: People getting nervous about a potential "Lehman Brothers" Moment in China:

https://youtu.be/wW1boQJ2e60

Reply
john
Posts: 11
 john
(@john)
Active Member
Joined: 1 year ago

Silence on such day?

Reply
1 Reply
john
 john
(@john)
Joined: 1 year ago

Active Member
Posts: 11

Have 2cts at 4310 and 4280. Don't feel ready to open new ones. Even thinking to reduce maybe to 1cts.

Quick red says Lehman inflicted up to 60bil loss. Somewhere seen Evergrande exposure being 300bil. Scary stuff...

Reply
fi4wanderlust
Posts: 39
(@fi4wanderlust)
Eminent Member
Joined: 7 months ago

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.

Reply
figuy1
Posts: 40
(@figuy1)
Eminent Member
Joined: 9 months ago

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.

Reply
1 Reply
earlyretirementnow.com
(@earlyretirementnowcom)
Joined: 6 years ago

Member
Posts: 231

@figuy1 Same here. The highest strike was 4300 but even that one held. Intraday it looked a bit shaky, but all worked out in the end.

This might shape up like a profitable week. High vol due to Evergrande and maybe also because of the FOMC meeting. I've sold puts with strikes all the way down to 3775. Crazy!

Reply
Page 1 / 3
Share: