Volatility trading

I am getting a huge buy signal on volatilty, so I bought calls on the VIX, april expiration. I bought a lot of calls at strikes otm to far otm, so we'll see. I am holding until I get a first confirmation before March 10, 2015, if volatilty remains subdued, I am out at that point.

The signal I am getting is too large to ignore but of course if I am wrong I will feel like an idiot for what I have done.
 


celticfire said:
I am getting a huge buy signal on volatilty, so I bought calls on the VIX, april expiration. I bought a lot of calls at strikes otm to far otm, so we'll see. I am holding until I get a first confirmation before March 10, 2015, if volatilty remains subdued, I am out at that point.

The signal I am getting is too large to ignore but of course if I am wrong I will feel like an idiot for what I have done.
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Yeah, we're going lower. The issue with buying upside calls on VIX is the vol-line on buying vol of vol. You should always measure the atm vs. otm swap or the 20-delta risk-reversal (vol of -20D puts vs. 20D calls). Vol in SPX is generally cheap here, so it's timely.

There are ways to structure upside deltas on VIX and pay very little for the volatility.
 
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Sold the put spread at 7.20 for a gain of 1.40 per contract. I'll update with a screenshot but I am on the iPad. 24% gain on req. 1.4% gain on portfolio.
 
poopie said:
Sold the put spread at 7.20 for a gain of 1.40 per contract. I'll update with a screenshot but I am on the iPad. 24% gain on req. 1.4% gain on portfolio.
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3YXfQzr.png


Portfolio approaching 4% gain for the two week period. Max DD was 0.3% on open position. No closed DD.
 
poopie said:
Bought this (well, something similar, same delta pos under 1SD distro) at work in my personal account. It's 70.80 mid, paying 71.00. Taking advantage of the short deltas in the earlier put spread. 7% allocation.


pCbeV6O.png
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Normally I'd hold this thru expiration and take the cash-settlement, but I have closed my position (same curvature) at work and it's best to be transparent. I am catching a flight this afternoon so I can't follow it into the close. There is no posted mkt on the spread as there is no bid on the wing-put (nickel offer). Selling one 2200; buying three 2110; selling two 2055 (all to close). That's why I am showing a shot of the legs.

$78.75 mid. Selling $78.00 (would be filled instantly). 9.9% gain on req. 0.7% return on portfolio.

LibpSpW.png
 
ROIShareTeam said:
Brah, I'm going to begin wrecking poopie this coming week. He better fucking pray that the trades he posts up here go as he says.
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This is why I am on your sack, unmercifully.

To state that you're woefully out of your depth is an understatement of biblical proportions.
 
ROIShareTeam said:
Brah, I'm going to begin wrecking poopie this coming week. He better fucking pray that the trades he posts up here go as he says.
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Week is over and all I hear or see is...

26adjAP.jpg


Hmmm.
 
14 calendar days.

3.31% gain on portfolio to date.

Draw-down of 0.3% of portfolio; marked to market on open and closed positions.

Running 11x risk (Profit Factor).
 
poopie said:
Let's go down Gru's list, shall we?


4) I am the largest non-commercial owner of ZFGN. My cost-basis is 17. Can't tell you more, buy it. That's the only company-specific color you will get. EMH again.
.
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3nbO6e6.png


Did you cut your losses, or are you still holding?

(Yeah I know by the time someone reads this, it may be 2019)
 
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