We didn't have, any trades yesterday to start off the week, and hopefully, everyone had a great long holiday weekend to spend time with family. This phenomenon has the common roots with the put options overpricing. When this occurs, it lets you know which side of the trade you want to be on. Writing articles on various option strategies requires a broad knowledge of how options work, and volatility is one of the main components.

So I read just about every article that I can on the VIX It is a proven options income strategy, with a market edge, that will boost your portfolio returns! A large percentage of the Steady Options community consists of do it yourself DIY investors who prefer to manage their own trading and long-term investing accounts. This is a great way to gain firsthand experience about how markets work, but at times it may be beneficial to get professional input on investing and other personal financial planning decisions.

Some varieties of call and put spreads are also called seagull spreads. It is so called because it contains a body and two wings. If the body is short, the wings are long, and vice versa. This 3-contract strategy includes two calls and a put, or two pouts and a call. Thomsett, March 4. Right now, people are feeling at a bit of a loss as to what to do with their money. Those who usually invest are probably well aware that the market is pretty tricky right now.

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During unprecedented times, there are often unprecedented outcomes when it comes to investments. By Kim, March 4. Although it sounds appealing initially, it also presents several challenges. By Kim, March 2.

The Incredible Option Trade in VXX

By Jesse, February Posted November 9, In the backtest example I can't understand results.. But that is strange, as this put spread looks like a 7 point-spread, so you can't gain as much on 1 contract strategy So what am I missing here? Posted November 10, Posted March 22, Posted April 26, We can see the price of the underlying doubled between Jan and Feb. It's okay because you will have black swan events and the steamroller will eventually come from trying to take on a leveraged trade every month. It is still a better strategy than buying calls on SVXY, which would have ended in disaster.

You would still be okay in the long run as you'd still be up a lot from the last 5 years of Fed induced stimulus, suppressing vol for the longest. Still, you can tweak this strategy using statistics and timing market tops by buying a protective put on SPY during periods which you think vol on the SPX will rip higher and hence market will tank. Timing tops is a whole other discussion and I have my own proprietary model, but I'd have to charge to tell people how to spot intra-year tops. You can look at the VIX curve to see when it is flattening and appearing like it will head toward backwardation.

That is the yellow light that the market is topping and may be headed for a fall.

During those times you can just close our your trade so as not to be exposed, and wait for the market to drop, and then short VOL subsequent, or you can stay in the trade and hedge with a protective put on the indexes or protective collars on your short VIX position. As mentioned in the article: "The average percent return per losing trade was This is why position sizing is the key as usual. Can it be timed? Possibly, but you would also miss some gains. Posted June 18, If you let an in-the-money call expire they will be automatically exercised by your broker.

• option trades for high volatility;
• Step 1) Sell VXX or UVXY Credit Call Spread When VIX Spikes?
• option trades for high volatility.
• classic easy forex rates.
• MODERATORS?

Also if they become deep ITM close to expiration, you might be assigned any time. If it is close to the bottom red boxes , most likely that trend will change at some point.

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This has happened recently during the summertime when COVID case numbers started to go down worldwide. It spiked shortly after that. The key is that VIX always reverts back to the mean. If it goes up, it comes back down.

VXX CROC strategy - selling volatility the right way!

If it goes way down, it always goes up. We just need to find the right time to jump on and off the waves. While it works for them, this has never worked for me.

1. How To Trade VXX Options? | Alpha Pursuits.
2. We want to hear from you!?
3. Simple Volatility Strategy For VXX • Decoding Markets.
4. Strategy Results 2/2009 – 1/2017;
5. best option trade ever.

Did you have great success with it? Please share it in the comment section. I would love to hear your story. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. Table of Contents.