Comments: Selling premium in the bitcoin futures exchange-traded fund with same delta'd strikes on both sides. High 30-day implied at 76.1%. 1.48 on buying power effect of 22.20; 6.7 ROC %-age at max; 3.3% at 50% max. You know the drill: look to take profit at 50% max; manage sides on approaching worthless/side test.
Good day, Sir. What do you scan for when looking for new trades?
DannyFoss
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@DannyFoss, high ivs and premium right. All the basic stuff?
NaughtyPines
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@DannyFoss, Yep. With BITO, I'm just looking to get some exposure to bitcoin premium. Otherwise, it's IVR (implied volatility rank -- where IV is currently relative to where it's been over the past 52 weeks) and IV.
DannyFoss
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@NaughtyPines, the bito trade... thats a lot of buy power no?
NaughtyPines
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@DannyFoss, Indeed. This results in a crappier ROC %-age than I usually settle for, but going small.
NaughtyPines
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@NaughtyPines, Just to compare and contrast: here's the XBI short strangle I opened:
NaughtyPines
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@NaughtyPines, 2.69 credit on buying power effect of 11.30 (on margin); 23.8% ROC as a function of buying power effect; 11.9% at 50% max.
DannyFoss
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@NaughtyPines, yes. This looks good. I mean, from my limited perspective.
DannyFoss
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@NaughtyPines, I thought you sto a 107 put the other day.
NaughtyPines
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@DannyFoss, That would've been in another underlying ... XBI maybe. Short strangle: Closed a January 21st 103/127 on 12/27. Opened a February 18th 100/132 almost immediately thereafter.