Straw poll - anyone using Long Volatility strategies in equities or equity index markets using equity options or other vehicles? Interested to hear of strategy approaches and timeframe - daily, intraday, etc. No need to give away any jewels - just interested in general views given current conditions.
-E.
when volatility is trending up on the SPY you could by a one month call and put with the same delta.
Agree with you on the long straddle with 30DTE.
Perhaps another similar strategy is to use shorter DTE straddles or strangles, with the idea that these are underpriced in the volatile conditions we've seen in recent months, and which may continue given the macro economic shift with Fed balance sheet reductions and interest rate increases, as well as the fear, uncertainty and doubt around tariffs, etcetera.
hi i traded this live on my options account using 2 and 3 week options. the time decay ate up some of my profits. I would need a big price move like 10$ within a couple days within one direction in order to profit on less than 4 week DTE
With the current volatility large moves are occuring (>>1.5SD) but you do need to be selective in the choice of underlying and also dynamically manage the position.
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