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One hour before close, sold the 4350 Put on SPX for $1.35 with index at 4436 at around 5.5 delta.
Good week with higher VIX and extra Friday AM close option.
Has anyone put on any Friday 8/27 trades? It is hard to mechanically put on the trade at all time highs with a dropping VIX. I like to be at least 100 pts away with 2 1/2 days to go.
I didn't put on any 8/27 trades. Powell is speaking on Friday and any talk of tapering will increase VIX.
IV for 2 day puts ATM was around 10 but 100 points OTM was around 16. When short term vol goes low I still sell but try to get a little further OTM to get a higher IV from volatility smile. It’s the logical opposite of increasing premium targets when volatility spikes.
I've been spoiled with pretty good VIX this last year, but hate selling 2-days when less than 1.75%. Normally sell two SPX, and normally wait on the second one for a VIX pop.