The XL112 Trade and How to Roll The Short Puts of The PDS

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The XL112 Trade and How to Roll The Short Puts of The PDS

Рет қаралды 4,425

Күн бұрын

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Пікірлер: 16

@wccgroundsman Ай бұрын

@ 5mins 30 secs you show/discuss the position using the analysis tool calling out at different points in the graph the $$ values in PL@EXP. However those $$ values are only of academic use at the very instant of creating the graph which uses the present moment strike-specific IV values. As the underlying price moves into the trap, the strike-specific IV's are going to change, potentially dramatically change depending on speed of the move down. The strike IV's can be adjusted in the Analysis Tab side bar, but how much to adjust those IV's is a subject beyond the scope of this forum, except to say in low IV environments like now, the PUT IV skew is sloped upward towards further OTM and long dated strikes. If there's a sudden move lower the IV skew will tend to flatten out with closer to ATM and closer to Expiry strikes moving disproportionally higher than deep OTM long-dated strikes in a portfolio.

@Thetatraderz Ай бұрын

If going to roll its easier to click roll strikes instead of quick roll. Clicking quick roll youll need to change expiration date.

@TommKing13 Ай бұрын

@@Thetatraderz I’m used to using quick roll and hitting the exp date button. Either way it works.

@metsfanal Ай бұрын

I feel like it might be better to switch to these ones when extremely overbought like right now to provide protection. And by that I mean rather than the long term 112, maybe do some of these instead when very over bought to protect a bit. Is there a reason against that?

@ngphil11 Ай бұрын

Great details and approach with the XL112s. It definitely provides much needed protection during the first half of a typical 112s life cycle, which is a sudden drop in the market. When you’re placing your XL112s are you entering for a debit given how wide the PDS is?

@TommKing13 Ай бұрын

No, this is still a good credit AND low BP use.

@ngphil11 Ай бұрын

@@TommKing13 with the PDS long at 25 delta (400 wide) and 5 delta short puts correct? Finding it difficult to get a credit with that PDS width

@TommKing13 Ай бұрын

@@ngphil11 I am 200 wide , not 400.

@ngphil11 Ай бұрын

@@TommKing13 ah my mistake. That works, thanks for clarifying Tom!

@ngphil11 Ай бұрын

@@RealTradesStockMarket thanks for clarifying, I misunderstood.