Market has finally chosen a direction and it seems that the bears are taking over. Monday is a very important day because we will find out if the 412 Level HOLDS!
Hey Thanks for the post. Great stuff. I have a few questions 1.What is your green moving average? (ex. Is it a 200 day MA?) 2. I'd like to know a bit more about your ideas on SPY puts (cause I do them often). From what I understand - your saying that it's much better to go with a SPY inverse? Like the The ProShares UltraPro Short S&P 500 (SPXU)? Your saying that these are better? (I'm very interested, lol)
Hello, 1.) The Green MA is 89 Moving average. 2.) Great question, so the inverses are much better and have a much better R:R. SPXU for example- Lower theta, higher delta, lower IV, and they are very cheap compared to spy puts. Only thing is that SPXU moves slow so this isn't the thing if you would like to day trade- its only if you are planning on holding for weeks to months.
Steversteves
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I also tend to use inverse shares to short it as a swing (buy the shares) and I tend to day trade 0 DTE SPY options. However, I have traded inverse options before (on SDS) and I never will again. Liquidity and spreads are terrible! I would only recommend if you plan to hold for a longer period of time. But this is just my experience, perhaps its gotten better since I have done it, but I still see the spreads are pretty crazy! Oh, and I like your analysis!
Thanks for the insight! you are right 100%; the inverses have terrible liquidity and move very slow so they are only good for holding for weeks to months on end. One thing is for sure that inverses will make a lot more money then puts whenever the market corrects; you don't wanna be buying spy puts where the theta is higher then the delta lool.
1.What is your green moving average? (ex. Is it a 200 day MA?)
2. I'd like to know a bit more about your ideas on SPY puts (cause I do them often). From what I understand - your saying that it's much better to go with a SPY inverse? Like the The ProShares UltraPro Short S&P 500 (SPXU)? Your saying that these are better? (I'm very interested, lol)