LD Lossdog Research
symbol

XSP

3 matching records.

Trade idea

XSP Buy call options

The speaker executed a trade by buying call options on XSP during a market correction, leveraging high IVR to capitalize on potential price movements. They sold the 7400 10 wides for tomorrow to reduce cost basis and manage risk. The trade was based on the expectation of a price increase following the correction, with the goal of profiting from the upward movement.

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StrategyBuy call options
Assetoptions
ExpirationAugust 21st
Time horizonShort-term (daily trading)
Entry / triggerMarket correction with high IVR
Target / exitProfit from price increase
Invalidation / stopLoss if price does not move upward
SpeakerJeff
Structure / legs
  • Buy 750 August 21st options
  • Sell 7400 10 wides for tomorrow
Risks
  • Price may not move upward as expected
  • Volatility may decrease, reducing the effectiveness of the trade
  • Market conditions may change rapidly, requiring quick adjustments
longlongXSPoptions
medium confidenceVerify in video at 1:04:02 ↗
Q&A

Is XSP a better option than SPY for trading?

XSP is cash-settled and does not have the risk of stock price movements after the close, unlike SPY. However, XSP may involve additional fees and has different tax implications compared to SPY.

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Actionable takeawayXSP is suitable for traders who prefer cash-settled options and are willing to accept potential additional fees and tax implications.
SPYXSPETFsoptionsTrading Strategy
high confidenceVerify in video at 29:29 ↗
Q&A

What should I take into consideration when choosing between SPX and XSP for an iron condor?

The speaker states that there is almost no difference between SPX and XSP in terms of movement and speed. Therefore, the choice between the two is largely irrelevant, and the focus should be on the strategy itself. The trader suggests that the key is to choose the one that allows for faster profit realization, but this is not guaranteed.

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Actionable takeawayThe choice between SPX and XSP for an iron condor is not significant due to their similar behavior. Focus on the strategy and profit targets rather than the specific instrument.
SPXXSPmarket instrumentsTrading Strategy
high confidenceVerify in video at 15:06 ↗