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IV is getting crushed hard.
2.5% buffers for over the weekend? No bueno,
Yeah, what happened?
Sold the 2/8 with 3805 Strike for $0.85 and was 4.5 delta (IV < 13), so not ideal.
Maybe Monday morning, I'll sell another put as 0 DTE, but spoiled with recent high IV.
Not a fan of low VIX and even lower IV. Sold at close, but not as much margin as I'd like for a 2DTE trade.
Sold the 3805 Strike at a 4 delta for $1.00 with SPX at 3910. As insignificant as my puts are to overall, there is no reason to think putting this data out there is a risk...right?
@navypack unless your broker now confirms your identity by asking what puts you sold and when I don’t think there’s a risk. I’m not sure how someone would use this information against you.
I sold a bit after 3pm for 10 points less than you for $1. Not sure the exact time as I left a limit sell at the ask price and got it when the price fluctuated a bit.
@nobatmanjokes was not rational and all the trades are already transparent.
If this got popular and there were a 1000s of 'extra' put sales down at 4delta, then maybe a big program would try to trip then.
Again, not an issue and me being paranoid for no reason.
@navypack it would take a ton of volume but most importantly if we believe the no-arbitrage condition it is unlikely to impact you. The demand would have to be so great across that entire section of the option chain to depress IV for many strikes. A 4 delta can’t become cheaper than a 3 delta or you have a money printing machine, and market makers would arbitrage away a mispriced 4 delta with standard hedging. This strategy isn’t new to institutional investors or hedge funds either and they would be the real movers, but they aren’t learning anything from this thread!
Due to the barrier to entry and payout profile it’s unlikely that put writing ever becomes a meme stock. If it did though, fine - most of those types can’t stomach the losses and would be out at first time ITM. If this got so popular in my opinion the main way for market makers to profit from rubes would be to pick off their market orders with ridiculous bid/ask at start/end of day. Seriously, the number of people placing market orders for GameStop at 800% IV was ridiculous.
Just a few minutes before close, sold the 3770 Strike at a 4 delta for $1.35 with SPX at 3906.
@navypack I sold throughout the day at strikes 3700-3760 with premiums around 0.80-0.90. I also did a few same-day options earlier that day to bring my total revenue back to $1,000.
Sold 2/16 expiration 3855 Strike for 0.95 at close and about 4.5 delta. Never like selling puts after a nice end of day run up.