We've been enjoying this bull run SPY has been having with calls and shares of SPXL.
However, we're now looking to add some negative delta into our portfolio seeing as the accumulation is now diverging from the price and there may a drop soon. I don't expect a huge drop, but I expect a correction soon. We are holding cash to buy dips with shares and long-term options for safety. IV percentile is relatively low now around 20%.
Seeing as futures are showing that we may open around $295, I suggest waiting until a the price starts to show downward momentum. Do not expect huge moves in SPY. Do not buy $220P for 5/15.
We may buy a few contracts of the $280P 06/01 as insurance this week, but again, we're mostly holding cash because my guess is that we aren't done with this upward FED pump BS for the next several months.
If options aren't your thing, consider SPXS. This is not a long-term hold type of stock as it decays over time, but I'm staying away from VIX.
However, we're now looking to add some negative delta into our portfolio seeing as the accumulation is now diverging from the price and there may a drop soon. I don't expect a huge drop, but I expect a correction soon. We are holding cash to buy dips with shares and long-term options for safety. IV percentile is relatively low now around 20%.
Seeing as futures are showing that we may open around $295, I suggest waiting until a the price starts to show downward momentum. Do not expect huge moves in SPY. Do not buy $220P for 5/15.
We may buy a few contracts of the $280P 06/01 as insurance this week, but again, we're mostly holding cash because my guess is that we aren't done with this upward FED pump BS for the next several months.
If options aren't your thing, consider SPXS. This is not a long-term hold type of stock as it decays over time, but I'm staying away from VIX.