2013
FILLED
Complimentary Overlays, or the AKA *The STUPID spread*? Time will tell.
(both going the same direction)
ORDERS
VXX RISK (The SKEW trade)
Note the distance to in the money each way.
FAS RISK (The Directional Play)
"When we talk about skew, we talk about how much higher the IV is as we move to the downside and how much lower the IV is as we move to the upside. A risk reversal buys the upside IV (much lower) and sells the downside IV (much higher). If skew "pops" (or is too steep), buying a risk reversal is an interesting play. If it is too shallow, selling a risk reversal is a better thing to do. Since, as retail traders, we rarely pay attention to skew, retail traders rarely trade risk reversals. But, they are definitely directional plays and can be used as such, especially if you use spreads. BUT…(that's a big but), this reverses when you do spreads. You want the skew flatter to buy risk reversals and steeper to sell them." (A. S.) #
ROLLED
ROLLED
FINALLY CLOSED
Note the distance to in the money each way.
FAS RISK (The Directional Play)
"When we talk about skew, we talk about how much higher the IV is as we move to the downside and how much lower the IV is as we move to the upside. A risk reversal buys the upside IV (much lower) and sells the downside IV (much higher). If skew "pops" (or is too steep), buying a risk reversal is an interesting play. If it is too shallow, selling a risk reversal is a better thing to do. Since, as retail traders, we rarely pay attention to skew, retail traders rarely trade risk reversals. But, they are definitely directional plays and can be used as such, especially if you use spreads. BUT…(that's a big but), this reverses when you do spreads. You want the skew flatter to buy risk reversals and steeper to sell them." (A. S.) #
#Email Correspondence from friend, Thank You.
ROLLED
ROLLED
FINALLY CLOSED
