Hey Goonies!
“How do I determine if Volatility is cheap or expensive?”
It’s a question that gets a lot of airtime these days, and rightly so. So what’s the answer?
Well, there are two main considerations for what drives volatility:
Human perception, in the form of expectations
Actual demand, based on either algorithmic or fundamentally-driven trading
These factors, along with trading volume, are ultimately what drives both options and stock prices.
So as a responsible and informed trader, what can you do to equip yourself to navigate these powerful mechanics?
And one step further – how can you know when a trend might just turn out to be a deadly trap for traders?
This Friday, Brent Kochuba and the team at SpotGamma are hosting a FREE webinar geared to answer this question, and more:
How Vanna – The Second-Order, Volatility Greek – influences options trading, how Market Makers hedge their portfolios, PLUS Vanna’s influence in a specific case study from the red hot tech sector
You can register here, right now:
Vanna -- Feel The Force (IT'S A TRAP!!!)
Love You Forever,
Thicc Kohrs
Both of these trades hit if held until close -- 6 total units!
Both of these trades hit if held until close -- 6 total units!
SPY missed & QQQ hit
The Trump-China-Trade announcement from the NYT knocked me out of my position. The CCS's were sold at $1.80/ea and I was forced to buy them backl at $4.40 -- This means my realized loss was $3,120 :(
The hedge did exactly what hedge plays are meant to do. It balanced me out! These PCS's were sold at $0.85/ea and expired worthless -- THIS MEANS MY REALIZED GAIN WAS $2,975!
