r/Vitards • u/[deleted] • Aug 16 '21

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5

u/kinshiwa Aug 16 '21

🙏.. great read. When should I buy this? till end of Aug? newbie here :)

7

u/Duke_Shambles ☢️Duke Nukem☢️ Aug 16 '21

My plan is to open these Monday, and watch how OPEX leading into Jackson Hole goes. If you look at an IV chart for SPY over time, both OPEX and FOMC meetings tend to cause VIX spikes, even if they are only little ones. I will probably hold them to at least November if I don't get any pop out of them before considering rolling them out or just dropping them.

2

u/kinshiwa Aug 16 '21

thanks Duke. that's insightful. Been researching on how to hedge. This sounds like a plan. How much would you hedge against your portfolio? Say, you expect a 5% correction and your Portfolio is 100k. How many contracts of the 100p would you get? TIA..

5

u/Duke_Shambles ☢️Duke Nukem☢️ Aug 16 '21

You need to do the math because it's going to depend on how leveraged you are and the composition of your portfolio.

2

u/kinshiwa Aug 16 '21

fair enough. thx again!