The swing trade logic in VIX focuses on long term historic price action. There is always going to be volatility in the market and the "bottom" is historically between $11.50 - $13.50. When the VIX drops below $13.50 we would want to go long with an options spread (such as the VVS options strategy) and when the VIX rises above $24.50 we would want to go short with an options spread (such as a credit spread).
We can also run a skewed Iron Condor when the VIX is below $13.50 with the same logic: skew the Iron Condor with the "risk" on the low side and a "breakeven" to the top side. This allows us to profit from a "sustained" low VIX while also protecting our trade from a top-side breakout. We do not need to protect our trade from a "downside breakout" and we can set the breakeven on the bottom near the $11.50 range.
VVS - unlimited top-side profit potential by developing a call debit spread with an added put option to finance our trade.
Skewed Iron Condor - "status quo" capped profit potential with "top-side" breakout protection
Bearish Credit Spread - Call Credit Spread focuses on selling into strength after a spike in the VIX, leaning on drag and time
We can also run a skewed Iron Condor when the VIX is below $13.50 with the same logic: skew the Iron Condor with the "risk" on the low side and a "breakeven" to the top side. This allows us to profit from a "sustained" low VIX while also protecting our trade from a top-side breakout. We do not need to protect our trade from a "downside breakout" and we can set the breakeven on the bottom near the $11.50 range.
VVS - unlimited top-side profit potential by developing a call debit spread with an added put option to finance our trade.
Skewed Iron Condor - "status quo" capped profit potential with "top-side" breakout protection
Bearish Credit Spread - Call Credit Spread focuses on selling into strength after a spike in the VIX, leaning on drag and time
The data provided by the COBE indicates that directional trading fails more than any other type of trading in the options market place: statistically speaking, if you want to increase your options win rate ~ you want to decrease your directional trading
면책사항
해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.
The data provided by the COBE indicates that directional trading fails more than any other type of trading in the options market place: statistically speaking, if you want to increase your options win rate ~ you want to decrease your directional trading
면책사항
해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.