So many shorts caught off side
It was a refreshing event to trade in what was a repeat of the CPI print earlier this month but at mid day.
If you read through any of my content over the past month and half I have been consistent in advocating this was a short term bottom (1-3 months).
In the comments I proposed SPX would break the 200 day moving average after the 3rd failed attempt.
This time it wasn't even the hedged equity funds being squeezed but doing the squeezing.
Most likely the TSLA Bears were taken out to pasture for euthanasia after shorting a major support.
I got wrecked on TSLA puts, but they were only a hedge to the shares I bought earlier this week.
Tips for trading events like this.
What's Next?
I outlined much of my sentiment for Dec in this post 2 days ago.
Cautious Optimism.
1-2 months out I think we are in for more positive gamma and a slow grind higher.
I have been dollar cost averaging TSLA while trading puts to fund buying more each pull back.
I think vix can reach $16 in Dec and would be a good time to dollar cost average downside protection on longer dated options farther out than Mar 23.
***not financial advice, just common sense.***
Compression on VIX is signalling long vol will be the next trade to consider into the new year.
JHEQX does not venture this deep into their short call... except after a recession bottom.
I'm anticipating a slow grind higher into year end with a chance of a flush around PPI/CPI should the numbers not align with Jerome Powells outlook.
long vol is getting cheap again as bulls shake off the year long bear market.
Watching skew gave a signal the Vix needs to die for Skew to live.
#RIP shorts.
If you read through any of my content over the past month and half I have been consistent in advocating this was a short term bottom (1-3 months).
In the comments I proposed SPX would break the 200 day moving average after the 3rd failed attempt.
This time it wasn't even the hedged equity funds being squeezed but doing the squeezing.
Most likely the TSLA Bears were taken out to pasture for euthanasia after shorting a major support.
I got wrecked on TSLA puts, but they were only a hedge to the shares I bought earlier this week.
Tips for trading events like this.
- Expect SPX and VIX to move to 0 Gamma strikes which are usually around the 20D moving average.
- Remember Convexity is your edge over dealers.
- I do 0 DTE options in a strangle.
- Take profit as your price targets are achieved.
- Leave a runner or two until close. Trading days like today only happen a handful of times in a year.
- Set limit orders on your options price targets for an event. When the event occurs the bots take over and will do sweeps at certain key levels like moving averages.
What's Next?
I outlined much of my sentiment for Dec in this post 2 days ago.
Cautious Optimism.
1-2 months out I think we are in for more positive gamma and a slow grind higher.
I have been dollar cost averaging TSLA while trading puts to fund buying more each pull back.
I think vix can reach $16 in Dec and would be a good time to dollar cost average downside protection on longer dated options farther out than Mar 23.
***not financial advice, just common sense.***
Compression on VIX is signalling long vol will be the next trade to consider into the new year.
JHEQX does not venture this deep into their short call... except after a recession bottom.
I'm anticipating a slow grind higher into year end with a chance of a flush around PPI/CPI should the numbers not align with Jerome Powells outlook.
long vol is getting cheap again as bulls shake off the year long bear market.
Watching skew gave a signal the Vix needs to die for Skew to live.
#RIP shorts.
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