More Trade Ideas for this High IV Market

Hi Steemians,

the sell off in the markets continues and the VIX keeps going up.
This is very rare for a Friday.
Are we going to get another Black Monday?
Nobody knows, but let's have a look at the some charts.

S&P Future had a rough day.

source: tastyworks

Nasdaq Future have been ugly, too.

source: tastyworks

The VIX kept rising accordingly

source: tastyworks

There was no flight to safety into bonds

source: tastyworks

Today the flight to safety was into gold

source: tastyworks

BTC had a quiet day.

source: tastyworks

Oil kept rising

source: tastyworks

Since nobody knows what will happen in the future, let's have a look into some delta neutral, or slightly directional strategies.
Today only defined risk strategies.

Legal disclaimer: These are not trade recommendations. Options involve risk and are not suitable for all investors. The trades shown below are for educational purpose only.

1. Iron Fly in FB:

source: tastyworks

• buy to open May 120 put
• sell to open May 160 put
• sell to open May 160 call
• sell to open May 200 call
• net credit $17.99
• profit target = $4.50 (25% of max profit)
• max loss/buying power reduction = $2,201

Management:

• close the position, when it trades for $13.50 (25% of max profit = $4.50)
• close the position when you reach 21 DTE to avoid gamma risk

2. GLD Call Broken Wing Butterfly:

source: tastyworks

• buy to open 1 May 128 Call
• sell to open 2 May 130 Calls
• buy to open 1 May 139 call
• net credit 56 cents
• max profit $2.56
• profit target $1.28 (50% of max profit)
• max loss/buying power reduction = $644

Management:

• close the position, when you can do it for $1.28 credit (50% of max profit) or butterfly it off, by buying the 132 call for less than 56 cents (in order to have a free butterfly on)
• close the position when you reach 21 DTE to avoid gamma risk

  3. SPY Delta Neutral Iron Condor:
  
  

  source: tastyworks
  • buy to open May 234 put (16 delta)
  • sell to open May 248 put (30 delta)
  • sell to open May 268 call (30 delta)
  • buy to open May 274 call (16 delta)
  • net credit $3.87
  • buying power reduction/max loss = $1,013
  • profit target $1.94 (50% of max profit)

    Management:

    • close the position when it trades for $1.94 (50% of max profit)
    • close the position when you reach 21 DTE to avoid gamma risk

    If you like these trade ideas, please upvote and resteem.

    Have a great weekend,

    Stephan Haller