$UAL $AAL $DAL $LUV Shortterm Shorts
This mild rally.... will it last?
Looking bright to fade. Will trade options on one of these.
LUV - 75% IV, 30% IVP. Sizzle - 50%
UAL - 110% IV, 33% IVP, Sizzle - 45%
DAL - 95% IV, 25% IVP, Sizzle - 50%
AAL - 136%IV, 33% IVP, Sizzle - 45% - Makes sense. Says a story for every every option trader out there. The risk of AAL going down is huge.
First thing - BACK RATIO SPREAD is not an option in the options strategy
Secondly - Tight Credit Spread can give you Great Credits.
Third - An DEEP OTM Iron Condor would give tremondous credit. Worth Leggin in it too.
Fourth - Diagonal with 4-1 Risk to Reward.
Fifth - Calender Risk 1 -2 Risk to Reward.
These seem to be the best option here. I will do the one that makes sense tomorrow, provided the entry triggers.
Looking bright to fade. Will trade options on one of these.
LUV - 75% IV, 30% IVP. Sizzle - 50%
UAL - 110% IV, 33% IVP, Sizzle - 45%
DAL - 95% IV, 25% IVP, Sizzle - 50%
AAL - 136%IV, 33% IVP, Sizzle - 45% - Makes sense. Says a story for every every option trader out there. The risk of AAL going down is huge.
First thing - BACK RATIO SPREAD is not an option in the options strategy
Secondly - Tight Credit Spread can give you Great Credits.
Third - An DEEP OTM Iron Condor would give tremondous credit. Worth Leggin in it too.
Fourth - Diagonal with 4-1 Risk to Reward.
Fifth - Calender Risk 1 -2 Risk to Reward.
These seem to be the best option here. I will do the one that makes sense tomorrow, provided the entry triggers.
Note
Note
Now the setup on LUV and DAL are interesting. I will be looking for a position here.Note
TOOK A LOT OF HEAT HERE. Hedged, added Risk and what not.... But now Profiting. Statistics Statistics and thats all.
Over the last 8 years, The important lesson was the ability to take heat. Early on in my trading carrier had winning strategies statically, but would get out for a loss, only to see Market come back to where I predicted. Played around with sizing positions for Max profit, Min Risk etc..... Still failed.
Soon I learnt to take heat and remain calm. Things started to work.
Will hold a bit more longer to see what these do.
Note
Closed ALL kinds of position. Net Net - 40% gain after all the hedges and Risk additions.
Uday C Santhakumar
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Uday C Santhakumar
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.