Trade idea
HOOD strangle
The speaker is long HOOD going into the earning cycle and has executed a strangle strategy.
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Strategystrangle
Assetstock
Time horizonearning cycle
Entry / triggerbefore earnings
SpeakerSpeaker
Risks- Market volatility
- Earnings surprises
Trade idea
Oil Strangles
The speaker believes that oil prices will revert to the 70-80 range by midyear due to the resolution of the Iran war. The current volatility is already priced in, so the best play is to short premium by selling strangles. This strategy is based on the expectation that the price will not continue to rise beyond the 125-130 range.
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StrategyStrangles
AssetCommodity
ExpirationNot specified
Time horizonMidyear
Entry / triggerPrice is above the 70-80 range
Target / exitPrice reverts to the 70-80 range
Invalidation / stopIf the price continues to rise above 125 or 130, the trade may be invalidated.
SpeakerTimmer and Scott
Structure / legs- Sell puts at 65 or 70
- Sell calls above 125 or 130
Risks- The price may not revert to the 70-80 range.
- The market may continue to rise beyond the 125-130 range, invalidating the trade.
- Volatility may increase further, making the trade less effective.
Trade idea
6E strangle
The euro is considered the best currency for a strangle due to its liquid markets and the speaker's personal position as a long holder. The speaker is short puts in the yen and suggests that the euro's market is more favorable for options trading compared to the British pound, which has less liquid options markets. The speaker believes the euro will rally to 1.36 and potentially higher, with a stop-loss at 1.10.
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Strategystrangle
Assetcurrency
ExpirationMay
Time horizonshort-term
Entry / triggerMarket conditions suggest a potential rally in the euro
Target / exit1.36 and 1.45, with 1.50 as an ideal target
Invalidation / stop1.10 as a stop-loss level
SpeakerDave
Risks- Market volatility
- Liquidity issues in the British pound options
- Failure to meet the target price
Trade idea
Bloom Energy (BE) strangles
The speaker discusses trading Bloom Energy (BE) with a strategy involving strangles, noting that the stock has experienced significant volatility with +5% daily moves. The speaker mentions that the stock is currently at 119, with options expiring in 3 days showing a wide range. The speaker suggests that the volatility is around 120, and that spreads may not move significantly, so the strategy involves trading around mid-price. The speaker also notes that they would not trade anything naked in this environment due to the high volatility and risk.
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Strategystrangles
Assetstock
Expiration3 days
Time horizon3 days
Entry / triggerstock price at 119
Target / exit119
Invalidation / stop119
SpeakerMike
Risks- High volatility can lead to significant losses if the stock moves against the position.
- The speaker's strategy is based on personal experience and may not be suitable for all traders.
- The speaker does not provide specific details on the execution of the trade or the exact strike prices used.
Trade idea
SLV strangle
The speaker is in a strangle position on SLV, shorting the 101 call and the 119 put with 18 days to expiration. The position is considered misaligned due to the current price of SLV being $81, which is significantly below the put strike price of 119. The speaker is advised to recenter the trade by buying back the guts and adjusting the position to allow for some upside delta. The rationale is that the position is not aligned with the current market conditions, and the trader needs to adjust the strategy to account for the current price level and volatility.
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Strategystrangle
Assetcommodity
ExpirationMarch 20th
Time horizon18 days
Entry / triggercurrent price of SLV is $81
Target / exitwaiting for IV to flatten
Invalidation / stopposition makes no sense due to misalignment between strike prices and current price
SpeakerDaniel
Structure / legs- short 101 call
- short 119 put
Risks- Misalignment between strike prices and current price
- Volatility may not flatten as expected
- Potential for large losses if the underlying asset moves significantly
Trade idea
Silver strangle
The speaker suggests selling a strangle on silver, which involves selling both a put and a call option at different strike prices. This strategy is suitable when the market is expected to remain within a certain range, allowing the seller to profit from the premium collected. The speaker also mentions that this trade is less aggressive compared to others, indicating a conservative approach.
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Strategystrangle
Assetcommodity
Time horizonshort-term
Entry / triggerwhen the market is expected to remain within a certain range
Target / exitprofit from the premium collected
Invalidation / stopif the price moves outside the expected range
SpeakerVic
Risks- market volatility
- unexpected price movements
- slippage in illiquid markets
Trade idea
IBM strangle
The speaker sold IBM puts and scalped them intraday, anticipating a potential downside move following a large pre-earnings announcement. The speaker noted that the stock had experienced a significant down move and that the downside risk had increased, leading to a shift in the pricing of puts. The trade was executed with the expectation of a short-term move, leveraging the volatility and market expectations around the earnings announcement.
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Strategystrangle
Assetequity
ExpirationJuly 22nd
Time horizonshort-term
Entry / triggerpre-earnings announcement
Target / exitintraday scalp
Invalidation / stopif the stock moves significantly against the trade
SpeakerTom
Risks- unexpected earnings results
- volatility spikes
- market sentiment shifts
Trade idea
Dell Strangle
The speaker suggests selling a strangle in Dell due to the high implied volatility and the expected move of $91. The trade involves selling options at $14, with the potential for a 96% pop. The speaker adjusts the strike prices based on the stock's movement, suggesting a strangle with options at $300 and $700. The trade is considered a contrarian play, leveraging the high volatility and the potential for a significant price movement.
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StrategyStrangle
AssetEquity
ExpirationAugust
Time horizon30 days
Entry / triggerStock price at $14
Target / exit400 points wide
Invalidation / stopIf the stock moves significantly against the trade
SpeakerSpeaker
Structure / legs- Sell August 300 put
- Sell August 700 call
Risks- Significant price movement against the trade
- Market conditions changing rapidly
Trade idea
MSFT strangle
The speaker suggests that the strangle on Microsoft (MSFT) is currently profitable and advises exiting the trade before earnings, as volatility is expected to increase significantly around the earnings date. The rationale is that the earnings period will likely cause a spike in volatility, making the strangle less effective. The speaker also recommends taking partial profits and exiting the trade before the earnings announcement to avoid potential losses.
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Strategystrangle
Assetequity
ExpirationAugust 21st
Time horizonShort-term (1-2 weeks)
Entry / triggerCurrent price level
Target / exit26% profit
Invalidation / stopEarnings date (July 29th) and volatility changes
SpeakerSam from Miami
Structure / legs- put strike 325
- call strike 450
Risks- Earnings may result in a significant price movement that invalidates the strangle
- Volatility may not increase as expected, reducing the trade's effectiveness
Trade idea
Gold strangle
The speaker is short a strangle on gold with a wide range of 1200 points, but the position has narrowed to 800 points. The speaker needs gold to rally another 100 points to roll down calls or adjust the position. The thesis is that gold prices need to stabilize for the next 30 days to allow for position management, with the expectation that the price will eventually decline to the 2000s. The invalidation is if gold prices do not stabilize or move significantly.
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Strategystrangle
Assetcommodity
ExpirationApril
Time horizon30 days
Entry / triggergold prices stabilize for 30 days
Target / exitroll down calls or close position
Invalidation / stopif gold prices do not stabilize or move significantly
SpeakerSpeaker
Risks- market volatility
- failure to stabilize gold prices
- loss on short position
Trade idea
NG strangle
The speaker discusses a short strangle on natural gas (NG) with puts at 375/380 and calls at 450/455. They note a significant gap down on the opening, which they attribute to the inherent volatility of natural gas. The strategy is based on the expectation of a reversion to the mean after a large move up. The speaker acknowledges the difficulty of trading natural gas due to its high implied volatility and the potential for large price swings.
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Strategystrangle
Assetfutures
Expirationnot specified
Time horizonshort-term
Entry / triggervolatility reversion
Target / exitnot specified
Invalidation / stopnot specified
SpeakerVinny
Risks- High volatility
- Large price gaps
- Market maker behavior
Trade idea
ZB strangle
The speaker suggests selling a strangle when volatility is super high, as seen in ZB due to the recent down move. This strategy is preferred over selling a single put or call when the trader believes the market is oversold. The strangle allows for capturing volatility while skewing the position to benefit from a potential reversal. The speaker also notes that the strangle should be skewed with a closer at-the-money put and an out-of-the-money call to capitalize on the perceived oversold condition.
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Strategystrangle
Assetbond
Time horizonshort-term
Entry / triggerhigh volatility
Invalidation / stopvolatility not reaching super high levels
SpeakerMaria
Risks- volatility not reaching expected levels
- market moving against the strangle
- execution issues during high volatility
Trade idea
Trade idea strangle
short premium play
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Strategystrangle
Time horizonshort-term
Entry / triggerselling a strangle in SanDisk with zero directional bias
Target / exittwo times the expected move on the call side and three times on the put side
Invalidation / stopno directional bias, emotional neutrality
SpeakerTony
Risks- emotional neutrality
- volatility contraction
Trade idea
Hood strangle
the 8115 strangle for about 240 is a marginal trade
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Strategystrangle
Assetstock
ExpirationSeptember
Time horizonshort-term
Entry / triggertrading right there right now
Target / exitalmost twice as much room to the upside as the downside
Invalidation / stopcall skew in Robin Hood
Speakerspeaker
Structure / legs- 80 strike put
- 115 strike call
Risks- call skew
- market volatility
Trade idea
Trade idea strangle
high implied volatility and call skew
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Strategystrangle
Assetequity
Time horizon45 days
Entry / triggerpost earnings
Target / exit80% pop
Invalidation / stopmarket makers on
Speakerspeaker
Risks- earnings announcement
- market volatility
Trade idea
QQQ strangle
QQQ is a favorite trade
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Strategystrangle
Assetequity
Entry / triggerwhen implied volatility is high
SpeakerShahrukh
Trade idea
Trade idea Strangles
Skew strangles based on market sentiment and stock valuation
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StrategyStrangles
Time horizonShort-term
Entry / triggerWhen stocks are beaten up or too expensive
SpeakerSpeaker
Trade idea
Trade idea strangle
The speaker and their friend Jules attempted to sell a strangle in every strike of the S&P, which resulted in a significant loss. The trade was based on a lack of attention to volatility levels and market conditions. The trade idea highlights the importance of understanding volatility and market dynamics before entering complex options strategies. The failure of the trade serves as a cautionary tale about the risks of overleveraging and not considering market conditions.
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Strategystrangle
Time horizonshort-term
Entry / triggerselling a strangle in every single strike in the S&P
Invalidation / stopvolatility and market moves
SpeakerScott
Risks- volatility
- market moves
- overleveraging
Trade idea
SAN strangle
The speaker executed a strangle in SanDisk (SAN) based on the stock's price movement, indicating a short position. The trade was based on the stock's recent decline, with the expectation of further downward movement. The speaker expressed uncertainty about the trade's effectiveness, noting that the stock had moved $200 a day but had recently declined by $3 to $5. The trade was not recommended to others, suggesting a personal strategy rather than a general recommendation.
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Strategystrangle
Assetequity
Time horizonshort-term
Entry / triggerPrice movement below a certain threshold
Target / exitPrice decline of $3 to $5
Invalidation / stopPrice increase above a certain threshold
SpeakerTom Sosnoff
Risks- Price reversal
- Volatility
- Market conditions
Trade idea
N/A Strangle
The speaker suggests a mechanical approach to trading strangles, using specific time-to-expiration (DTE) parameters and profit-taking levels. The strategy involves selling strangles with a 45 DTE and 21 DTE, with a target of taking profits at 50% max P. The speaker also notes that the environment's volatility levels influence the optimal profit-taking point, with lower volatility favoring quicker profit-taking (25% to 50%) and higher volatility allowing for longer holding periods.
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StrategyStrangle
AssetN/A
ExpirationN/A
Time horizonShort-term, with a focus on 25% to 50% profit-taking
Entry / triggerMechanical trading with strangles using 45 DTE and 21 DTE parameters
Target / exit50% max P profit-taking
Invalidation / stopMarket moves against the position or volatility levels change
SpeakerUnlucky Investor's Guide
Risks- Market moves against the position
- Changes in volatility levels
- Unanticipated market movements
Trade idea
AAPL strangle
volatility is high and stock is expected to move $21
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Strategystrangle
Assetstock
ExpirationSE
Time horizonshort term
Entry / triggerpost earnings
Target / exitdelta neutral
Invalidation / stopif stock sticks around 300
Speakerunknown
Risks- adjust strikes if needed
- stock could move more than expected
Trade idea
SLV strangle
The speaker is considering a strangle on SLV with a strike price of 6080, noting that the IVR has decreased from 100 to 32. They believe the expected move of $9 is still significant, and the trade is considered liquid enough. The speaker suggests that this is a trade worth considering due to the potential for upside and the current volatility levels.
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Strategystrangle
Assetstock
ExpirationJuly
Time horizonshort-term
Entry / triggercurrent price around $66-67
Target / exitexpected move of $9
Invalidation / stopIVR down to 32
SpeakerScott
Risks- Volatility may not materialize as expected
- Market conditions can change rapidly
- The trade may not perform as anticipated due to unexpected news or events
Trade idea
natural gas strangle
The speaker suggests selling strangles with deltas between 16 and 20, placing calls 2.5 times further out of the money than puts. This strategy accounts for the asymmetric risk profile of natural gas, where upside potential is theoretically unlimited while downside is capped. The speaker also mentions that straddles are not suitable for natural gas due to its high volatility and limited downside potential.
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Strategystrangle
Assetcommodity
Expirationnot specified
Time horizonnot specified
Entry / triggerwhen natural gas is trading under three bucks
Target / exitnot specified
Invalidation / stopif natural gas moves significantly against the position
SpeakerVince
Risks- significant downside risk if natural gas moves against the position
- limited upside potential if natural gas remains within the strangle range
Trade idea
Trade idea strangle
The speaker advocates for short strangles as a go-to strategy, particularly in volatile markets. This approach is based on the idea that market movements provide opportunities, and liquidity is a key factor in executing trades. The strategy is not tied to specific symbols but rather to the overall market conditions, emphasizing flexibility and responsiveness to market dynamics.
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Strategystrangle
Assetoptions
Time horizonshort-term
Entry / triggervolatility and liquidity
Invalidation / stopmarket movement and liquidity
SpeakerSpeaker
Risks- Market movement against the position
- Liquidity issues
- Volatility decay
Trade idea
META strangles
The speaker sold strangles in Meta and the chip stock ETF SMH due to their belief that implied volatility was excessively high, indicating overpriced options. The reasoning is that high IVR may reflect speculative behavior rather than true risk, creating an opportunity to short the volatility. The trade was based on the assumption that the market was inflating volatility, not reflecting actual risk. The speaker emphasized that this approach is mechanical and relies on IVR as a key indicator.
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Strategystrangles
Assetequity
Time horizonshort-term
Entry / triggerIVR at 100, which is the highest over the last year for Meta
Invalidation / stopIf IVR drops significantly or if the market shows signs of genuine risk increase
SpeakerThe speaker
Risks- Market may not be mispricing risk, leading to potential losses if volatility is justified by fundamentals
- Volatility could spike further, increasing the risk of losses
Trade idea
EUR strangle
The speaker has been short strangles on the euro for the entire year, noting that while the returns have not been great, they are up money. They mention that the euro is the most liquid of all the currencies and that they like selling puts here. The speaker also notes that the IVR is currently at 60%, which they find high for the euro, and that they are looking to sell naked puts on Rocket Lab.
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Strategystrangle
Assetcurrency
ExpirationSeptember
Time horizonshort-term
Entry / triggerIVR at 60%
Target / exitpremium destruction
Invalidation / stopif the euro moves significantly against the short position
SpeakerLarry Olsson
Risks- Market volatility
- Potential for significant losses if the euro moves against the short position
- The strategy may not be suitable for all traders
Trade idea
META strangles
The speaker proposed selling strangles on Meta (META) due to the high IVR, expecting a volatility drop post-earnings. The trade was based on the assumption that the high IVR would decrease, allowing for profit. The speaker emphasized closing the trade if the IVR dropped significantly or if the underlying assumption (e.g., volatility) changed. The trade was considered risky if the position became too capital-intensive, and the speaker suggested reducing the size or rolling the position if necessary.
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Strategystrangles
Assetequity
Time horizonshort-term (around earnings event)
Entry / triggerhigh IVR (Implied Volatility Ratio) due to earnings
Target / exitIVR drops significantly or underlying assumption changes
Invalidation / stopposition too capital intensive or deemed too risky
SpeakerTom
Risks- IVR does not drop significantly
- underlying assumption changes
- position becomes too capital-intensive
Trade idea
Rocket Labs strangle
If a trader sells a put on Rocket Labs and the stock price drops significantly, the put becomes a losing trade. To adjust, the trader can roll the call down or recenter the position by buying the guts and selling the wings in the same month. This allows for delta neutralization and risk reduction. Rolling to the next expiration also adds duration and lowers delta, reducing risk. The primary method for risk reduction is adjusting the untested side of the strangle.
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Strategystrangle
Assetequity
Expirationcurrent
Time horizonshort-term
Entry / triggerstock price moves down $10
Target / exitadjust delta by rolling the call down or rolling the put up
Invalidation / stopif the stock continues to move against the position, roll the call down or recenter the trade
SpeakerScott
Risks- Market movement against the position
- Transaction costs
- Slippage in execution
Trade idea
SLV strangle
The speaker suggests maintaining the same strangle or adjusting the strikes up by a buck for SLV, given the stock is up slightly. This trade idea is based on the assumption that the stock will continue to move in a favorable direction, allowing for profit from the strangle. The expected move of $8 is mentioned, indicating a potential for significant price movement. The trade is considered a short-term strategy with a focus on capturing volatility.
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Strategystrangle
Assetcommodity
Expiration215
Time horizonshort-term
Entry / triggerstock is up small
Target / exitmove the strikes up by a buck
Invalidation / stopif the stock moves significantly against the trade
Speakerspeaker
Risks- market volatility
- unexpected price movements
- liquidity issues
Trade idea
Nvidia strangle
The speaker executed a strangle on Nvidia with strikes at 205 and 250, collecting $200 on a one lot. The trade allows for a higher probability of profit and a greater credit compared to a defined risk strategy like an iron condor. The trader is comfortable with the extra risk for the potential higher return, and the trade can be adjusted based on the expected move.
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Strategystrangle
Assetstock
Expirationnot specified
Time horizonNot explicitly stated, but the trade was executed in the morning.
Entry / triggerMarket volatility is high, and the trader is comfortable with undefined risk.
Target / exitNot explicitly stated, but the trader collected $200 on a one lot.
Invalidation / stopNot explicitly stated, but the trader mentions the expected move and the potential for being two times the expected move.
SpeakerTom Sosnoff
Risks- Higher risk compared to defined risk strategies
- Potential for larger losses if the market moves against the trade
Trade idea
null strangles
The speaker discusses the use of strangles, specifically referencing April premium, as a potential trading strategy. The speaker suggests that this approach may not be the best option, but it is presented as a possible play. The speaker also notes that the market may be overbought, leading to potential sell-offs.
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Strategystrangles
Assetnull
Expirationnull
Time horizonnull
Entry / triggerApril premium
Target / exitnull
Invalidation / stopnull
Speakernull
Risks- Market overbought conditions
- Potential for irrational behavior
- Macroeconomic narratives may not materialize as expected
Trade idea
GLD strangle
The speaker mentions selling a strangle in gold, indicating a short volatility strategy. The strangle involves selling both a put and a call option at different strike prices, aiming to profit from a range-bound market. The speaker's focus on volatility suggests that the trade is based on the expectation of limited price movement in the near term.
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Strategystrangle
Assetcommodity
Expirationnot specified
Time horizonnot specified
Entry / triggermarket volatility
Target / exitnot specified
Invalidation / stopnot specified
SpeakerScott Sheridan
Risks- Market moves beyond the strangle's range
- Implied volatility decreases
- Liquidity issues
Trade idea
Trade idea Strangle
Roll to October if still bullish on AMD
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StrategyStrangle
Time horizon20 some odd days left to expiration
Entry / triggerPut on AMD strangle in February
SpeakerSpeaker
Risks- Assigned long stock
- Covered calls in the money
- Potential loss on strangle
Trade idea
IBIT strangle
stock will stay in a narrow range
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Strategystrangle
Assetstock
Time horizon52 days
Entry / triggerstock price movement
Target / exitpositive delta
Invalidation / stopstock movement
Speakerspeaker
Trade idea
natural_gas strangle
The speaker is long strangles on natural gas, indicating a bullish outlook. They mention experiencing significant daily moves (10% to 50%) and are considering rolling positions or taking a loss. The strategy involves profiting from volatility, with the speaker acknowledging the risks of large moves and the need for a therapist due to the stress involved.
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Strategystrangle
Assetcommodity
Expirationnot specified
Time horizonshort-term
Entry / triggermarket move
Target / exitnot specified
Invalidation / stopnot specified
SpeakerScott
Risks- Large price swings
- Volatility risk
- Emotional stress from high-risk trades
Trade idea
natural_gas strangle
The speaker is short strangles on natural gas, adjusting positions daily by buying the guts and selling them back out. The strategy involves maintaining small positions and adjusting based on IV levels. The thesis is that the price will reverse or the IV will drop, allowing for profit. However, the risk is that the price could continue to rise, invalidating the trade.
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Strategystrangle
Assetfutures
Expirationcurrent_month
Time horizonshort-term (days to weeks)
Entry / triggerprice near 20-30 delta
Target / exitprice reversal or IV drop to 90
Invalidation / stopprice continues to rise beyond 30 delta or IV remains above 130
Speakertrader
Risks- High volatility can lead to rapid losses
- Price could continue to rise beyond expected levels
- IV may not drop as anticipated
Trade idea
Trade idea strangle
A wide strangle is the optimal trade in stocks with heavy call skew, as it allows for greater distance on the call side while maintaining the same risk as the put side.
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Strategystrangle
Assetstock
Entry / triggerheavy call skew
Target / exitwide strangle
SpeakerBat
Risks- volatility contraction
- delta risk
- overexposure
Trade idea
PLTR strangle
The speaker suggests widening the strike range of a strangle position in PLTR from 130-150 to 100-180 to capture more call skew and improve comfort during volatility expansion. This adjustment is based on the observation that the current position is underperforming due to the puts moving in the money. The strategy assumes that volatility will continue to expand, which is supported by recent market conditions. The risk is that volatility may contract, leading to a loss.
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Strategystrangle
Assetequity
ExpirationAugust
Time horizonshort-term
Entry / triggervolatility expansion
Target / exit100-180 strike range
Invalidation / stopvolatility contraction
SpeakerTony
Risks- volatility contraction
- premium costs
Trade idea
soybeans strangle
The speaker suggests selling a 1290/1120 strangle on soybeans for a credit of $712. This is a delta-neutral trade with a high IVR of 93, indicating a potential for significant returns. The trade is considered attractive due to the high implied volatility and the potential for a 75% pop. The speaker also mentions that this trade is being considered alongside a Dell trade due to the high IVR observed in soybeans.
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Strategystrangle
Assetcommodity
Expirationnot specified
Time horizonshort-term
Entry / triggercurrent price level
Target / exitcredit of $712
Invalidation / stopif the price moves beyond the strangle range
SpeakerThe bat
Structure / legs- sell 1290 call
- sell 1120 put
Risks- volatility risk
- time decay
- market movement beyond the strangle range
Trade idea
SLV strangle
The speaker is short strangles on SLV, with the put at 51.48 and the call at 52.49. The trade is based on the assumption that the stock is on its lows and will not move significantly. The speaker mentions that the trade is expected to have a 64% pop and an IVR of 31. The trade is considered a good opportunity due to the current market conditions and the potential for a profit.
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Strategystrangle
Assetcommodity
ExpirationAugust
Time horizonshort-term
Entry / triggerstock is on its lows
Target / exit1.00
Invalidation / stopif the stock moves significantly against the trade
SpeakerTony
Structure / legs- short put at 51.48
- short call at 52.49
Risks- Significant market movement against the trade
- Time decay reducing the value of the options
Trade idea
SPX strangle
The strategy involves selling a zero-day strangle and buying long wings at the 30-day expected move. Adjustments are only necessary on days with significant price movements (over 1/2%). The speaker emphasizes that the difference in results between staying in the zeros or adjusting is minimal, and the strategy is based on extensive backtesting over 2 years.
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Strategystrangle
Assetindex
Expirationzero-day
Time horizonshort-term
Entry / trigger30-day expected move levels
Target / exitprofit from volatility compression
Invalidation / stopsignificant price movements (over 1/2%)
SpeakerRaphael
Structure / legs- sell zero-day strangle
- buy long wings at 30-day expected move
Risks- Significant price movements may require adjustments
- Volatility may not compress as expected
- Market conditions may change
Trade idea
IVR strangle
strangle strategy with specific strike prices and expiration date
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Strategystrangle
Assetcurrency
ExpirationAugust 21st
Time horizonshort-term
Entry / triggerstock's up today
Target / exitmax profit of $39
Invalidation / stopstock's movement
Speakerunknown
Risks- stock's movement
- market volatility
Trade idea
INTC strangle
Intel's high IVR and liquidity make it an attractive candidate for a strangle trade. The high IVR suggests potential for significant price movement, while liquidity ensures that the trade can be executed efficiently. The trade is skewed towards calls and puts based on the trader's risk preference, with the potential for a 80% pop. The trade is considered high probability due to the high IVR and liquidity.
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Strategystrangle
Assetstock
Expirationmonthlies
Time horizonshort-term
Entry / triggerIntel has the highest IVR on the board
Target / exitpop of just about 80%
Invalidation / stopIf the market moves significantly against the trade
SpeakerScott
Structure / legs- 170 87 and 1/2 strangle for 625
- 170 87 and 1/2 strangle for 625
Risks- Outlier risk
- Market volatility
- Liquidity issues
Trade idea
META strangle
The speaker is short a skewed strangle on oil, expecting a $10 or $15 drop before a $10 rise. The trade is based on the belief that the market is long oil, and the speaker is taking a short position to capitalize on potential downside. The trade is considered low risk due to the skewed strangle structure, which limits upside risk while capturing potential downside.
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Strategystrangle
Assetequity
Time horizonShort-term
Entry / triggerMarket opens
Target / exitOil price drops $10 or $15
Invalidation / stopIf oil price rises $10
SpeakerSpeaker
Structure / legs- short calls with twice the delta of puts
Risks- Oil price rises unexpectedly
- Volatility decreases, reducing the effectiveness of the strangle
Trade idea
Marll strangle
The speaker proposed a wide strangle on Marll due to the high IVR of 102. The strategy was designed to capitalize on the volatility without being exposed to the upward bias of the market. The speaker noted that the stock had a significant move on Friday and was up 12% on the day of the trade. The strangle was considered a neutral strategy that could benefit from the high volatility, but the speaker warned that the market could 'run over' the position if it moved against the trade.
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Strategystrangle
Assetstock
Expirationcurrent
Time horizonshort-term
Entry / triggerIVR of 102
Target / exitprofit from volatility
Invalidation / stopmarket moving against the position
Speakerunknown
Risks- market moving against the position
- volatility decreasing
- liquidity issues
Trade idea
Trade idea Strangles
The speaker suggests that strangles can be a viable strategy for traders who are looking to capitalize on volatility and price movement within a defined range. They emphasize that strangles are easier to manage compared to iron condors, especially for those who are new to options trading. The speaker recommends starting with smaller positions and gradually adding more strangles to the portfolio, while ensuring that the underlying asset has high implied volatility. The strategy is suitable for traders who are willing to take on the risk of unlimited loss on the upside but are looking for the potential for significant gains.
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StrategyStrangles
Time horizonShort-term, with potential for adjustment
Entry / triggerHigh implied volatility rank
Target / exitProfit from stock price movement within the strangle range
Invalidation / stopUnlimited loss on the upside if the stock moves beyond the short strikes
SpeakerMiguel
Risks- Unlimited loss on the upside
- Difficulty managing large positions
- Need for high implied volatility
Trade idea
Trade idea strangle
A wide strangle was sold in Microsoft due to expected earnings movement.
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Strategystrangle
Entry / triggerMicrosoft earnings
SpeakerTony Battista
Trade idea
Gold Strangle
The trader sold 10 delta puts in gold to collect premium, expecting the market to remain within a certain range. The trade was based on historical research indicating that the optimal delta range for premium collection is between 16 and 22. The trader noted that the premium collected was significant, and the trade was part of a broader strategy to manage risk and reward effectively.
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StrategyStrangle
AssetCommodity
Time horizonShort-term, with a focus on premium collection.
Entry / triggerWhen the market is expected to remain within a certain range, based on volatility and market sentiment.
Target / exitCollect premium based on the delta range (10 delta in this case).
Invalidation / stopIf the market moves beyond the expected range, the trade may be invalidated.
SpeakerVince
Risks- Market volatility could lead to losses if the price moves beyond the expected range.
- The trader may need to adjust the position if market conditions change unexpectedly.
Trade idea
SAN Strangle
The speaker is selling strangles on SanDisk (SAN) with a short-term horizon. The strategy involves selling both a put and a call option, with the put having a strike price of $6 or $7 and the call having a strike price of $20. The target is for the price to drop to the put strike price, while the invalidation is if the price rises above the call strike price. The speaker is confident in the short-term volatility of the stock, expecting a price drop.
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StrategyStrangle
AssetEquity
ExpirationN/A
Time horizonShort-term
Entry / triggerMarket price above strike price
Target / exitPrice drops to $6 or $7
Invalidation / stopPrice rises above $20
SpeakerUnknown
Risks- Price rises above $20
- Volatility decreases
- Market conditions change
Trade idea
null Strangles
The speaker mentions selling strangles in SanDisk, with the downside strikes at $6 or $7 and the upside expanding by 20. This indicates a trade idea involving strangles, but the exact details such as entry, target, and stop are not specified. The trade is described as 'crazy insane' and 'not a good trade', suggesting the speaker is skeptical of its effectiveness.
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StrategyStrangles
Assetnull
Expirationnull
Time horizonNot specified
Entry / triggerSelling strangles in SanDisk
Target / exitNot specified
Invalidation / stopNot specified
SpeakerSpeaker
Risks- Market volatility
- Incorrect assumptions about price movement
Trade idea
Trade idea strangles
strangles can be effective if the stock price moves within expected range
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Strategystrangles
Assetfutures
Time horizonintraday
Entry / triggerearnings report
Target / exit55 or 60 cents
Invalidation / stopstock price movement
Speakerspeaker
Risks- unexpected volatility
- earnings surprises
Trade idea
Uber strangle
The speaker suggests selling a strangle on Uber despite its low price, citing its non-AI status and decent implied volatility. The strategy involves skewing the strangle slightly to account for upside risk, with the rationale that the stock's current position near its lows makes it a viable candidate for a short strangle. The thesis is based on the assumption that the stock's low price and volatility provide a favorable risk-reward profile.
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Strategystrangle
Assetequity
Time horizonshort-term
Entry / triggerstock trading near its lows with decent implied volatility
Invalidation / stopif the stock breaks out significantly upward
Speakerunknown
Risks- Potential for significant upside movement
- Volatility may not materialize as expected
- Market news could disrupt the trade
Trade idea
SPX strangle
The speaker discusses a short strangle on Intel (INTC) as part of a diversified portfolio. The trade is positioned to benefit from volatility, with the speaker noting that the expected move in the NASDAQ is a key factor in the trade's rationale. The trade is part of a broader strategy of using non-correlated assets to minimize risk.
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Strategystrangle
Assetindex
Expirationunknown
Time horizontwo weeks before expiration
Entry / triggermarket conditions before expiration
Target / exitunknown
Invalidation / stopunknown
Speakerunknown
Risks- volatility risk
- expiration risk
- market direction risk
Trade idea
NVIDIA Strangle
The speaker sold out-of-the-money puts on NVIDIA at the 75 level expiring tomorrow and executed a one-for-two call ratio spread by buying the 205 and selling the 210s. The trade was successful as the puts were bought back for 10 cents and the call spread yielded about 15 cents. The strategy relies on the price remaining within the expected range, and the speaker noted that the trade worked out despite the overall market conditions.
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StrategyStrangle
AssetEquity
ExpirationTomorrow
Time horizonShort-term (within a day)
Entry / triggerPrice opens down $2
Target / exit15 cents profit from the call spread
Invalidation / stopIf the price moves beyond the expected range
SpeakerSpeaker
Structure / legs- Sell out-of-the-money puts at the 75 level expiring tomorrow
- Buy a one-for-two call ratio spread with the 205 sold and 210s bought
Risks- Price moves beyond the expected range
- Volatility changes
- Market conditions affecting the trade
Trade idea
META strangle
The speaker suggests selling a strangle on Meta (META) with a strike range of 500 puts and 950 calls, based on an IVR of 113 and an expected move of $95. The trade is considered high-risk due to the high IVR and the potential for significant price movement. The speaker acknowledges the trade's volatility and suggests adjusting the strikes slightly and considering an iron condor if the trade is not desired. The trade is presented as a non-directional play, relying on the volatility and expected price movement.
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Strategystrangle
Assetstock
ExpirationAugust
Time horizonShort-term, with adjustment after the show
Entry / triggerIVR of 113 and expected move of $95
Target / exitProfit from the strangle at $6.10
Invalidation / stopIf IVR drops significantly or the stock moves outside the expected range
SpeakerTom
Risks- High IVR and volatility
- Potential for significant price movement
- Risk of assignment if the stock moves below the strike price
Trade idea
CATER Strangle
The speaker suggests using a strangle on Caterpillar stock, where the trader sells both a put and a call option. The strategy is based on the expectation that the stock will move significantly in one direction, with the trader willing to accept a small loss if the stock moves up but can profit from a larger downward move. The potential loss is limited, while the profit potential is significant if the stock moves down. The trader is advised to sell strangles to capitalize on the potential downward movement.
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StrategyStrangle
AssetEquity
Time horizonShort-term
Entry / triggerStock is expected to move significantly in one direction
Target / exitProfit from a significant downward move
Invalidation / stopLoss if the stock moves significantly upward
SpeakerSpeaker
Risks- Loss if the stock moves significantly upward
- Limited profit potential if the stock moves in the expected direction
Trade idea
Nvidia Strangles
The speaker shorted strangles and a ratio spread call, expecting the stock to move within the expected range. However, the stock did not move significantly, leading to a loss on the premium sold. The thesis was based on the assumption that the stock would move within the expected range, but the actual movement was minimal, resulting in a non-event. The strategy was to capitalize on the expected move, but the lack of movement invalidated the trade.
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StrategyStrangles
AssetEquity
Time horizonShort-term
Entry / triggerWhen the expected move is higher than the current price movement
Target / exitUncertain, based on market movement
Invalidation / stopIf the stock moves significantly beyond the expected move
SpeakerTom Sosnoff
Risks- Market volatility
- Incorrect expected move prediction
- Liquidity issues
Trade idea
NFLX short strangle
The speaker proposes a short strangle in Netflix with a conservative strike range, based on the expected price movement of $6 outside the range on both sides. The strategy is described as low risk and low reward, suitable for traders looking to participate in potential price movements without significant exposure. The speaker emphasizes the importance of the IVR and the probability of success, suggesting that the trade is appropriate for those seeking to enter a strangle in Netflix with a low risk profile.
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Strategyshort strangle
Assetequity
ExpirationJune
Time horizonShort-term
Entry / triggerStock price within a narrow range
Target / exit75% probability of success (P50)
Invalidation / stopSignificant price movement beyond expected range
SpeakerSpeaker
Structure / legs- short put at 82.98
- short call at 88.78
Risks- Limited reward potential
- Risk of significant price movement beyond expected range
Trade idea
SPAC strangle
short strangle on SpaceX with 41% expected move
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Strategystrangle
Assetequity
Entry / triggerstock trading at $41
Target / exit41%
Speakerunknown
Trade idea
Trade idea Strangles
The best time to take profits from a strangles trade is when the trader feels it is a good number, rather than waiting for specific expiration dates or volatility levels. The trader should consider rolling the position if volatility remains high, but should not overthink the trade and should move on to the next trade if a profit is achieved.
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StrategyStrangles
Time horizonShort-term, typically within the first 24-45 days of the trade
Entry / triggerWhen the trader feels the trade is performing well
Target / exitTake profits when the trade reaches a desired level
Invalidation / stopIf the trade moves against the trader or if the market conditions change significantly
SpeakerSuzanne
Risks- Market volatility
- Time decay
- Incorrect assumptions about market behavior
Trade idea
ES strangles
The speaker suggests trading wide forward/ES strangles as a strategy to profit from significant market movements in either direction. The strategy involves buying both a call and a put at different strike prices, with a wide range. The speaker emphasizes the importance of not using cheap options, as they may not provide sufficient coverage for the risk involved. The speaker also discusses the notional value of the contracts and the required capital for the strategy.
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Strategystrangles
Assetindex
Expirationone month
Time horizonone month
Entry / triggermarket volatility
Target / exitprofit from significant price movements in either direction
Invalidation / stoploss if the market does not move significantly in either direction
Speakerunknown
Risks- Market not moving significantly in either direction
- Loss if the market moves against the position
- Potential for high capital requirements
Trade idea
CL strangles
The speaker suggests that crude oil is a range-bound market with high implied volatility, making it suitable for short strangles or iron condors. By selling strangles at 70 and 150, traders can collect premium while profiting from the price range. The strategy relies on the market staying within the defined range, and the high implied volatility supports the potential for significant premium collection.
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Strategystrangles
Assetcommodity
Expirationcurrent
Time horizonshort-term
Entry / triggerprice within the range of 80 to 110
Target / exitprofit from the wide price range and high implied volatility
Invalidation / stopprice breaking out of the range or significant volatility drop
SpeakerTom
Risks- Price breaking out of the range
- Volatility drop
- Market liquidity issues
Q&A
What delta mees strangle would you sell and how far out would you go?
The speaker suggests selling a strangle with deltas between 16 to 22, and mentions that the expiration could be September or October, with a recommendation to roll to October in a week.
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Actionable takeawayThe speaker recommends selling a strangle with deltas between 16 to 22, with expiration in September or October, and suggests rolling to October.
Q&A
When do you decide when it's a good time to sell a strangle and how to manage a strangle?
The best time to put on a delta neutral strangle is when implied volatility is really high. Adjust the strangle whenever you get a little bit uncomfortable. If one delta gets to two times the other delta, adjust the position to neutralize it.
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Actionable takeawayAdjust strangles when uncomfortable or when deltas become imbalanced.
Q&A
How do you determine when to cut losses on short puts and strangles?
The speaker suggests using a two standard deviation move as a guideline and staying in the trade if the expected move is within the statistical probability of profitability.
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Actionable takeawayUse statistical probability and expected move to determine when to stay in or cut losses on short puts and strangles.
Q&A
When it comes to defending your position, let's say a strangle, Tom always says that we want to roll the untested side of the trade. This makes sense. Tom also says to not close out the tested side. Do we roll the tested side further out to balance out the original deltas?
Yes. When you roll from one month to the next, you open up your ideas. You could keep the same strike if you want to, especially if it's still out of the money, but maybe it's too close to the money. You want to move down a little bit. Let's just say you're getting tested to the downside. Your puts are a little bit closer. You can move your put down a little bit, get a little bit less delta to it, a little less credit. Also, when you roll month to month, you can open it up. You could do whatever you want. You could change the whole overall position.
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Actionable takeawayWhen rolling a strangle, consider adjusting the untested side to balance deltas while avoiding overexposure on the tested side.
Q&A
How wide is your strangle?
The speaker is unsure about the width of the strangle and suggests that the market is pricing in a move of around 5.5%.
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Actionable takeawayThe speaker is uncertain about the width of the strangle and suggests that the market is pricing in a move of around 5.5%.
Q&A
When using the 50% take profit rule, how do you handle strangles?
The speaker explains that you should not close one wing of a strangle at a time. Instead, the strangle should be treated as a spread and closed as a spread. The speaker suggests waiting for 50% or other percentages like 25%, 30%, 35%, etc., but emphasizes that the trade should be managed as a spread.
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Actionable takeawayStrangles should be managed as spreads, not closed one wing at a time.