Picking half a percent means deploying $10k to pick up $50. This morning I was just doing that. I was also repotting some plants from my backyard orchard to sell. That took about an hour of leisure work but it should net me $120 (6 x $20). When volatility was booming it was easy for the $10k to do just about that :-\
I want volatility to come back :'(
byu/Unlucky-Clock5230 inoptions
Posted by Unlucky-Clock5230
3 Comments
[deleted]
Try the 2x or 3x leveraged ETFs, eg, SOXL, UPRO, TQQQ, URTY. Plenty of volatility there.
Vol is there, you simply need to look other places. This is a common issue when traders get attached to a certain style of trading and/or used to a specific market condition. Remember, markets change and it’s our job as traders to adapt with it.
Where to find the vol that’s gone?
-Earnings releases
-Phase trial updates
-Economic events
-M&A new
-Run vol scans: vol expansion across X previous days; IVPercentile above 40%, etc. I ran an IVP scan cross sectioned with weekly options and it has nearly 200 returns. Not all will be tradable but you get the point.
-etc.
There are TONS of sources to sell vol is that’s a mainstay of your approach, but if it is, you need to be ready to pivot as the market pivots. Each of those listed above will behave a little differently, and will have different risk profiles. In this case, most will offer more of a binary event style move – but hey, vol is gone and if we want to sell vol beggars can’t be choosers. It’s there, just in a different form.
None of this goes into the need as a retail trader to actually deploy strategies that better fit with the current market: aka trading directionally using ratio diagonals, covered strangles, etc.
There’s opportunity, just need to look for it. Good luck!