$UAL $AAL $DAL $LUV Shortterm Shorts
Updated
This mild rally.... will it last?
Looking bright to fade. Will trade options on one of these.
LUV - 75% IV, 30% IVP. Sizzle - 50%
UAL - 110% IV, 33% IVP, Sizzle - 45%
DAL - 95% IV, 25% IVP, Sizzle - 50%
AAL - 136%IV, 33% IVP, Sizzle - 45% - Makes sense. Says a story for every every option trader out there. The risk of AAL going down is huge.
First thing - BACK RATIO SPREAD is not an option in the options strategy
Secondly - Tight Credit Spread can give you Great Credits.
Third - An DEEP OTM Iron Condor would give tremondous credit. Worth Leggin in it too.
Fourth - Diagonal with 4-1 Risk to Reward.
Fifth - Calender Risk 1 -2 Risk to Reward.
These seem to be the best option here. I will do the one that makes sense tomorrow, provided the entry triggers.
Looking bright to fade. Will trade options on one of these.
LUV - 75% IV, 30% IVP. Sizzle - 50%
UAL - 110% IV, 33% IVP, Sizzle - 45%
DAL - 95% IV, 25% IVP, Sizzle - 50%
AAL - 136%IV, 33% IVP, Sizzle - 45% - Makes sense. Says a story for every every option trader out there. The risk of AAL going down is huge.
First thing - BACK RATIO SPREAD is not an option in the options strategy
Secondly - Tight Credit Spread can give you Great Credits.
Third - An DEEP OTM Iron Condor would give tremondous credit. Worth Leggin in it too.
Fourth - Diagonal with 4-1 Risk to Reward.
Fifth - Calender Risk 1 -2 Risk to Reward.
These seem to be the best option here. I will do the one that makes sense tomorrow, provided the entry triggers.
Note
Note
Now the setup on LUV and DAL are interesting. I will be looking for a position here.Note
TOOK A LOT OF HEAT HERE. Hedged, added Risk and what not.... But now Profiting. Statistics Statistics and thats all.
Over the last 8 years, The important lesson was the ability to take heat. Early on in my trading carrier had winning strategies statically, but would get out for a loss, only to see Market come back to where I predicted. Played around with sizing positions for Max profit, Min Risk etc..... Still failed.
Soon I learnt to take heat and remain calm. Things started to work.
Will hold a bit more longer to see what these do.
Note
Closed ALL kinds of position. Net Net - 40% gain after all the hedges and Risk additions.
Uday C Santhakumar
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