midway on Nostr: Most of my strategies are various forms of butterflles or a calendar/disgonal. I ...
Most of my strategies are various forms of butterflles or a calendar/disgonal. I choose which one based on whether I want to be long or short volatility. I usually trade SPX for various reasons. I lay those out in my blog. Too long for here.
Are they volatility plays? Not exclusively. But I do like to lean short when IV is high and long when it’s low. There are non-directional plays that rely on extrinsic value decay of the short legs. The longs in my trades are primarily there to hedge the risk from the shorts. That’s how most spreads work.
Not sure if I fully answered you. Feel free to follow up.
Are they volatility plays? Not exclusively. But I do like to lean short when IV is high and long when it’s low. There are non-directional plays that rely on extrinsic value decay of the short legs. The longs in my trades are primarily there to hedge the risk from the shorts. That’s how most spreads work.
Not sure if I fully answered you. Feel free to follow up.