Did a couple livestreams this week explaining a silver options strangle that I covered and a bitcoin ratio put spread I put on.
Post-mortem of silver strangle
In this video I step thru the source of profits for a silver option trade.
We talk about:
- why I sold the strangles and then why I covered them
- implied vs realized volatility p/l
- the premium volatility in silver futures options vs SLV options and how assets can be decomposed into a volatility on an underlying but also volatility of a risk premium
- the divergence in SLV vs silver futures price Ari's article that I referred to regarding realized vol sampling discrepancies: A 2-D snapshot of a 4-D happening
Understanding the risk of an IBIT ratio put spread
In this video:
- see how greeks are useful to understand local risk
- learn how to "age" a position and shock the stock and vol to project p/l and greeks
- understand the interaction between greeks, vols, time, and moneyness
- discuss the trick of imagining extremes to comprehend how changing market parameters effect your greeks I also share my view on BTC which you should definitely take with heaps of salt