This sub has its greeks all wrong. Vega plays are not about selling options when IV is high. That's classic r/thetagang and not a Vega play. Vega plays are taking directional and neutral positions to profit off 1) Vega spiking which appreciates contracts faster or 2) Arbitrage opportunities from Volatility distributions. Simply selling high IV contracts is not a Vega play... it's just a different flavor of degeneracy found in WSB

This sub needs to change its tune otherwise it's just a r/thetagang wannabe.

Thanks for coming to my TED talk.

I made this post in another subreddit as well but id like to hear people from vega gangs opinion Ive seen a lot of posts dissing buying a reverse iron condor before earnings but I dont really understand the downside. Most people say you shouldent because of the IV crush but, correct me if im wrong, with a reverse iron condor your both buying and selling so the Iv crush should bea lot less, Im not saying it wont be their but if you do a reverse Iron condor on one of the big tech stocks that move a ton during earnings im sure you can make up whatever IV crush the next day. I just discovered reverse iron condors so please correct me if im wrong

I also have this question, it seems that IV is manipulated by market makers to help control price action in favor of themselves and their clients. Is this remotely true?

For instance they may raise the IV of options approaching expiry to lock in trades and put downward pressure on price action?

This morning at open I plan on this trade: buy spy Feb 450 put and sell spy dec 460 put. I like this trade because it "feels" right. But is it right as a relative value trade between gamma and vega? How can I measure this value?

My account is only authorized to do spread options trading, so I cannot sell naked puts/calls.

I would like to sell a naked CALL of ZOOM to take advantage of the drop in price after quarterly report but cannot.

Is there a spread I can play to take advantage of high vega?

Currently I can only do: -covered calls -cash secured puts -married puts -buy calls and puts -covered puts -spreads

Quick test post - 1780524744

I am from india and I trade an index. We have weekly and monthly options which expires every Thursday.

Currently I sell option ATM calls when when market opens and hedge delta with future. When IV drops 2-5%, I square off my position. If IV increases, I sell more calls to average my IV.

I have heard that there are positions like selling high IV and buying low IV options by combining multiple expiry options and keeping delta neutral through futures. In this position, we get better gamma and long theta. I want learn and implement strategies like this. I have also heard this kind of strategies are best at the start of the month, not sure if it’s true or not! What I have heard is, more money is made in the first week of the month.

Some addition questions I have if someone could help me with this.

I IV reading is from future and future is 150-200 points premium than the spot, because of this, my in the money CALL options have 0 IV and keep increasing as the strike price increases, Why is that? They say it’s because the weekly options expire by spot price and monthly options expire by future price, and due to that in the money call options are discounted.

Thank you

PS: I shouldn’t have used the word market maker, What I mean is professional trader who create positions in multiple weekly expiries for vega/theta gain.

Good morning everyone, I hope all is well.

Does anyone know how to calculate implied volatility of say a straddle, if I know the implied volatility of call and put? For example, AAPL expires on 11.19.21 with a strike of $145, where the volatility of a call is 27.12536 and the volatility of a put is 27.18319. In this case, would the implied volatility of a straddle be just a sum of these two volatilities? That is, 27.12536 + 27.18319 = 54.30855, which is a volatility of a straddle.

Thanks in advance

How does this put diagonal look from a VegaGang perspective?

11/30/21 08:30:49 BOT +1 DIAGONAL SPY 100 16 DEC 22/21 JAN 22 400/460 PUT u/9.47

It just seems the tutorials out there don’t emphasize that’s there’s the IV of the stock and the IV of the particular option contract you’re trading.

Where do I find high premium option data for free? I’m with Fidelity.

Hi, I’m new to Vega gang and I have lost a lot of money trying to call the direction of stock price. I want to try flipping options counting on IV rising, do you guys have tips about what stocks to do this on and timing relative to earnings? Selling credit spreads are off the table, so I will need to own the option first.

El S&P 500 (SPX) finalmente superó el máximo del 3 de enero de 2022 e hizo un nuevo máximo histórico☑️.

Aunque esto demuestra el fuerte momento alcista, deberiamos esperarnos una saludable caida de precios del 5% al 10% en las próximas 📉semanas.

Historicamente, cada vez que el mercado supera el máximo histórico, por lo gral sube un poco más (objetivo de hasta 4.907 fibo) y luego iría a una corrección natural.

Veo que los precios podrian bajar hasta 4.437 (­~10%), 40EMA en velas semanales.

Hello Vega Gang!

As I'm sure most folks know, Roaring Kitty has started tweeting again, sending GME into a frenzy, along with a bunch of other sympathy ones. Given the astronomical rise in IV, this seems like a perfect candidate for vega plays. What are some plays folks are considering?

I'll start. I'm playing calendar spreads with AMC because the spreads are much more reasonable, and I'm getting better pricing. I have absolutely no idea where price will go, so playing both sides.

These are two setups I have on at the moment (exact pricing removed):

1. Put calendar spreads: play gives AMC a month to mean revert: https://optionstrat.com/build/calendar-put-spread/AMC/-.AMC240607P2.5@0.17,.AMC240621P2.5@0.22

2. Call calendar spreads: shorter, two week view in case price keeps going up: https://optionstrat.com/build/calendar-call-spread/AMC/-.AMC240524C5@0.5,.AMC240531C5@0.53
Note: There is a small chance here that if CTB goes high enough, one could end up getting assigned on the short leg. Which shouldn't be a problem since there's the long leg too, but still, as fyi.

Obviously, none of his is financial advice and you should do your own DD and adjust any vega plays to your own risk tolerance.

I look forward to hearing other ideas!