TSLA Faces Cheap Puts
Lots of spot up/vol up across the market and call skew much more expesensive TSLA riskies have also had a big move. Given that the vols aren't that elevated and put skew is much cheaper, thoughts on TSLA ahead of SPCX offering https://t.co/9ykLTT1xqm
SNDK's 40x Surge Makes Volatility Spike, Options Cheap
Appreciating what high volatility means... SNDK is up ~40x in a year. The vol has justifiably exploded. If you want to bet on it halving by December (ie up 20x from where it was a year ago), the put spreads offer...
Strike and ATM Vols Drop Amid Market Sell‑off
Seeing this across a lot of ETFs and stocks...strike vols and floating ATM vols are both down which is unusual for such a sell-off but not shocking since we were in spot up/vol up backdrop lately https://t.co/qHBtlXU3vp
SPX Volatility Won’t Decline Without Single‑Name Vol Drops
In other words, difficult for SPX vols to fall without the singles vols coming down
SF Homebuyers Can Fund Housewarming Gift With Closing Trade
If you are closing on a house in SF trading on this will pay for your housewarming gift
Mag10 Index Shows Half Typical Realized Correlation
Mag10 index is about half the internal realized correlation as it is typically (realized corr usually in the 30s) you can run your own here: https://t.co/x6uhVkqDPT https://t.co/ZO3k762JAs
Find Longs Where Shorts Deem Options Cheap
Was discussing this idea with a mm just yesterday. They mentioned that this was a good place to look for longs since you catch people short who think the options are cheap so it has the contrarian thing you need...
Sell Calls, Buy VIX: Counterintuitive Yet Viable Trade
thinking aloud... correlations already in the toilet. for vol to fall singles vol needs to fall we are in spot up vol up in singles so if you sell singles calls and buy VIX, it's logical rel value trade but sounds like suicide....
Abnormal Skew Signals Asymmetric Option Risk: Higher Ups
This is the type of idea that inform an option trading strategy around a distribution having an abnormal amount of skew compared to a regular day. when you read Andy's observation your option brain translates this to..."probably higher but if...
VRP Ratio & Spread Chart Classified by IV Levels
I asked the moontower agent (https://t.co/uk1QwX5UsC) to plot a list of names by VRP both as a ratio and a spread and classify by IV level (MRVL has earnings end of May & I only excluded upcoming earnings names) https://t.co/SvRklwOhqO
Kids Assume Class Numbers Match Student Names, Not Order
A few years ago when my eldest was in 4th grade we were talking about his class number being 2 (class numbers assigned alphabetical by last name). I said oh there must be an "Aaron" or something and he said...
Apply the 3‑Pitch Rule to Boost Portfolio Diversification
Moontower Sunday 🌙"3 pitches" rule 🌙 Investment Beginnings Class #4: Risk 🌙 See how much diversification benefit you have in your portfolio https://t.co/vnQ5pVjjxQ refs: @DavidEpstein @BalesBets https://t.co/VgAeGFpRTk
Spaced Repetition Unlocks Mastery of VIX Technical Analysis
Today's spaced repetition teaches you how to do technical analysis on VIX. This is how you manifest that orange lambo
Options Reveal Pricing of Known Asset Bubbles
Today's spaced repetition is more thought fodder for assets that are being squeezed and option surfaces trying to price known bubbles (this is not the same as debatable bubbles and if you haven't considered the distinction, that's something else to think...
CAR Volatility Spike Stabilizes Market, Reduces Uncertainty
The easiest way to qualitatively understand the hammering of $CAR vol on the selloff is that this move was STABILIZING to the market. It reduces uncertainty. Opposite of how normal sell-offs work.