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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?
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...
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.
@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!