GoSeigen wrote:GoSeigen wrote:GoSeigen wrote:
VIX is still high and so I continue to write options. Aug expiration ended with several calls ITM, I rolled those positions to Sep short strangles. Also opened a short Nov call around 1 Sep which looked foolish for a few days but is now well OTM and I wrote a short Nov put against the call to complete the strangle.
Sep expiration was very good with practically every position closing out of the money. Used part of the freed margin to open an Oct short strangle.
As has been the case for months, I don't have the ability to call direction in the short term and have actually been surprised at the speed and relentlessness of the bull run since March. Thus with elevated implied volatility I am happy to keep making these non-directional trades in the US market and to stock pick in the UK market.
GS
Oct expiration was fairly uneventful for me, breakeven on the Oct strangle. I was left with a few remaining short Nov strangles; with the renewed volatility curve inversion last week I bought Jun S&P straddles for the first time in months. Today the VIX is up and vol curve more inverted. Tempted to buy more straddles but will see how the day's trading goes: I'll buy more if last week's position is in profit and I have sufficient margin.
GS
P.S. Still hold a few ITM short Dec S&P calls which I'll cover if we get a decent market fall.
VIX term structure still inverted and VIX is rising. My previous Jun straddles are in profit so I doubled up today. That leaves me roughly neutral in terms of market exposure on my options (equal long/short positions), but the longs are Jun and shorts are Nov contracts. So I will use sharp underlying movements to take profit on the Nov contracts if possible.
GS
Those long straddles were in profit yesterday after the strong rise at open with the call legs well in the money. Term structure was normal. I took the chance to write some Nov S&P straddles. After the market came back down that didn't look too clever but I am protected from falls by those long Jun straddles so not too worried. I'm still bullish equities and hope yesterday's highs will be taken out again in short order.
GS
EDIT: Did take the chance to partly cover the put leg of my earlier short strangles so happy with that.
EDIT: Yesterday was a technical breakout from a brief consolidation but there are technical warning signs too, so the bullish angle is not clear-cut.