T O P
4606120

Fairly decent strategy, but note there's a fair amount of risk in this. Both stock specific risk and market risk if there's a correction or something.


thabigbadwong

Definitely both risky plays but the market is extremely oversold, fear & greed index shows extreme fear levels, and bull-bear sentiment is leaning towards bearish - so I’m favoring the long side at the moment


banditcleaner2

market (SPY) down 3-4% after going up 100% in the last year and a half....new covid variant..."but the market is extremely oversold" ​ lol


[deleted]

My shitty growth shit is down nearly 50%


thabigbadwong

Heavy on the ARK plays? Lol


thabigbadwong

*stocks are extremely oversold (except big tech)


thabigbadwong

Notes/Color Commentary: 1. AMZN is a put credit play and UVXY is a put debit play (both essentially bullish plays) 2. UVXY: if SPY can get a daily close above 456 I think it’s still worth shorting volatility at these levels (doesn’t mean the market correction is done but will be a big first step for bulls to regain control) 3. AMZN: this is a semi deep ITM bull put play; it’s a little risky given that it expires next week so I would need to see a fairly quick move above the short strike for me to come out green. (will exit the play if AMZN closes below 3400)


ikimashyoo

AMZN is at 3430 now?


thabigbadwong

Yep that’s correct


Sgsfsf

Rip


[deleted]

[удалено]


thabigbadwong

Thanks playa - yday’s drop was brutal but I got a feeling the Santa Clause rally is still at play 👀


thabigbadwong

Current value at closing: https://imgur.com/a/ZXO2q0E


stonk_fish

Still in green even after the dip, not bad.


thabigbadwong

Thanks playa 🤝


voldemort_tequila

You and me broski Let’s get this bread! https://i.imgur.com/ilASAln.jpg


thabigbadwong

Fucking love to see it - get that bag playa!


voldemort_tequila

About 12k premium by next Friday, selling before that just to be safe LESSSSS GOOOOO


Derrick_Foreal

I need to figure out how to use this. You create an imgur account then post a picture and it gives you a link?


voldemort_tequila

I use the Apollo app on my phone, anything beyond that I have no clue about


stonk_fish

3360/3650 condors on AMZN look solid IMO. I don't think it will rip harder than that in either side. Whats the long legs for each? 5 wide?


voldemort_tequila

1k each, so 17k in collat to make 6k by next Friday


Bertankrr

why bullish amzn?


thabigbadwong

Solid financials, yuge future upside, dominates in different verticals, wide moat, poised for bigly breakout…I can go on and on about why I’m bullish on AMZN


Bertankrr

Be safe bro, know when to exit


bitemenow999

Can I ask why bull puts and not Call spread on amazon? Doesn't credit spread blocks a lot of money as collateral? most of which could be used on other trades... or is it just because you want it to have high liquidity while closing the position...


thabigbadwong

IV on AMZN is still relatively elevated so I prefer to be an option seller at the moment


Alltimehigh0

wouldn't it be the same though? you're still selling one option with a call spread.


thejoetats

No a bullish call spread is a debit, a call credit spread would be the opposite play


Alltimehigh0

OP is bullish on AMZN. you still buy and sell one option, wether you do that with bull calls spread or a bull put spread (credit vs debit), it shouldn't make any difference unless there's a skew in the put vs calls price.


thejoetats

It definitely affects the position Greeks though. If you think IV is higher than realized volatility will be (like OP is planning for) a credit spread will benefit from IV contraction while a debit spread will look for IV to increase. The two legs of the spread somewhat cancel out but if you add the Greeks together you'll see how the whole position behaves


ForrestNub

He is asking why put credit spread instead of call debit spread


thabigbadwong

That was my answer lol. AMZN’s IV is relatively elevated so I went with a put credit play - however if the IV is relatively low (like it was in the first week of November 2021) then I probably would have went with bull calls.


Derrick_Foreal

Looks like you are blacking out a position between the 2.


thabigbadwong

It’s just one of my IWM sell call positions so I blacked it out


Derrick_Foreal

Got it. Do you use TA or how do you go about determining which levels to sell or buy spreads at ?


thabigbadwong

I use a combination of TA & option flow to determine direction (bull/bear) Strike selection generally depends on the potential risk/reward. - If I anticipate a very large move I might go more OTM if it’s a debit spread or more ITM it’s a credit spread. - If I have a direction in mind but am unsure of how large the move might be, I tend to go more ATM


fockerjunior

damn nice play on the uvxy dog. i didn't even think of put debit spreads as a replacement for call credit spreads.


thabigbadwong

UVXY Bear Calls are best played when it rips but since I wanted to play weeklies I went with bear puts instead


triple-verbosity

How does one do a bear put? What is it exactly?


likeyehokwhatev

Bear put = put debit spread = buy put + sell put at lower strike


triple-verbosity

Thanks!


redtexture

Why UVXY, versus the variety of available Exchange Traded volatility vehicles?


thabigbadwong

UVXY and its option chain has really nice volume - high volume and OI in options provide easier fills for the bid/ask.


thabigbadwong

UVXY has high volume & OI = tighter bid/ask spreads = easier fills


redtexture

Thanks.


Equivalent_Goat_Meat

Im liking that UVXY spread...


refinancemenow

GUH I've also lost money on AMZN this week. And UVXY puts, but I did have some UVXY calls I rode up till today that I profited from.