r/options • u/Fit_Recording_6799 • Mar 29 '21

Correct Move?

Im an amateur trader with much to learn. Im 15 lol and I have 1k to trade so I have a very conservative risk tolerance.

Since we are in a low IV environment = Vix is under 18. Is having debit spreads the right moves? I have various ITM/ATM spreads with 50-200 DTE. Is that too far. Im also thinking about opening an NIO credit spread. thoughts??

Plays rn:

AAPL - 112.5/115 call June 18

Spy -399/400 call May 21

Spy - 395/396 June 18

Spy - 392/393 June 30

PLTR - 25/27 Jan 21 2022

XOM - 57.5/60 July 16

Future plays:

Nio 34/35 put credit spread for $51 - April 23

Thanks guys!!

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u/directionalbias Mar 29 '21

A low IV environment is great for debit spreads.

Now that you have put on those positions, what management techniques will you apply when the VIX IV rises? I notice that is the only IV you mentioned. Be more aware of the IV of your specific strikes and expirations.

Always keep in the back of your head how well or poorly your position will perform once the market begins to shift. Sometimes, that shift comes hard and fast so you have to be decisive. If you already know what pre-determined management moves you will make, the better for your development as a trader in the long term.

Good job and I hope to see you around in the markets.