Jim Riggio and I reviewed last week's market action. We had the big drop on Thursday after the MH17 was shot down. We reviewed two trades that we put on:
– I had an interesting trade in the ES futures and futures options.
– Jim put on a new UVXY trade
Video Time line
| 8:55 | Tom shows his ES futures options and futures trades last Thursday |
| 15:05 | Jim talks about his UVXY trade and how he read the volatility action |
| 23:36 | Jim talks the SPX volatility skew and shows the Livevol X model |
Links from the video
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Tom, quick questions regarding your hedge trade just to understand the rational. Why didn’t you buy an SPX put to hedge your SPX trade when market was still open (I think you bought ES put option around 8pm CET?), did you just want to be in the position to take it immediately off should overnight market turn around?
Were you using IB’s interface (Risk Navigator) to model how many futures contracts / options to buy to reduce your delta on SPX?
Great session again, Thank you for the lot of valuable insights!
Hi Jim,
Sorry I didn’t see this until now. WordPress has been automatically approving posts for me so I didn’t know they were here!
I used the ES futures for that hedge because I wanted to get back into trading futures options. I certainly could have used SPX puts but I had an itch to trade ES futures options 🙂