in this trade i see certainty in either direction as a positive. this trade captures either delta change or expansion in the main leading sector.
in this trade we take a russell proxy KRE and SP 500 proxy XLF . both underlinings are extremely liquid and IV is low in both.im expecting positive certainty that being said the trade setup will be
the russell proxy KRE (3-- 100 wide bull calls) and the sp500 proxy XLF (2--100 wide bear put spreads).
the ratio is based on CME's risk management suggestion for russell vs SPX .
yes, rising in some cases can be