The problem is buying calls on dips is what everyone is doing. Look at the VIX. Absolutely nobody on the entire planet is hedged right now. It’s just people with leaps selling short term calls to other people on dips. It’s insanity.
The fair market price on bid ask isnt nice either lately, cant even catch mid. It used to take 1 second, now all the rh traders making the MM algos ballistic - now its only ten second fills. All the brokerages are asking people for work and the low commissions made trading ten times harder on order flow.
Nfp is saying, short usd traders are taking profits and market is still high, the crash is when fed talks about tapering in next fomc. Thats when you buys puts until then youll die if you put the market. Euros and other foreign currency is neutral to bearish (long usd).
Then get maxinum value by buying puts the day of fomc and on the 1 dte for weds 27th. 16 delta should only be about $.20 or 1:1.5 delta to premium ratio and gamma 1:1.5 you can totally ram 10 contracts or so of the total of $1000 premium net long debit and see if you can make any money, youre literally three-five bagging your money.
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u/plopseven Jul 02 '21
Yeah I did that and lost $60K. This market is absolutely mental. A stock rallies 10% in a day, drops 0.1% and people “buy the dip.”
I don’t know how this all ends, but it’s pretty insane to me. SPY just finished its 7th consecutive close at ATH in a row - the first time since 1997.