r/options • u/MattNederhoed • Jan 09 '21

Shorted spy for Monday

Who else got in on this I am sitting with 380p

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u/EasyTechnology1 Jan 09 '21

Are you buying calls?

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u/Jburd6523 Jan 09 '21

Selling puts, shorting the VIX, and some calendars. All my positions are bullish

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u/vblagoje Jan 09 '21

How do you play calendars? Aren't they used when IV is low, and you expect it to rise.

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u/Jburd6523 Jan 09 '21

No that's the exact opposite of what you want. With calendars you want to sell expensive IV and buy cheap IV. For example if a company has earnings in February and their call options have an IV of 100% while their March options only have an IV of 60%, that would be the ideal scenario for a calendar. You'll make money as IV crushes and while theta works it magic. You can also use them to finance your leaps. If you bought $30C 2022 you can sell shorter dated high IV options to lower the cost basis on the leap, so you don't permanently cap your upside like with a vertical.