• Brandon

Trade Ideas | 8/15/18

The Chinese Yuan situation is adding to the volatility being cause by Turkey. All that means to us is that there are more opportunities to sell volatility!

$GLD - gold has gotten beaten up this year. It surprises me that with a currency crisis taking place in at least one economy and potentially in another that gold is not trading up. That said, IV has increased, and is now at a level where selling some premium is attractive. I would trade a "dynamic" iron condor here, with a slight skew to the upside. All that means is that you need to sell calls & puts with approximate Delta absolute values instead of strikes equidistant from current ULP.

room to linger around the lows or create new lows

collecting ~25% of the width in net credit

$EEM - it goes without saying why emerging markets are suffering. I don't see a huge rush to buy in the works unless there is some reason for a short squeeze to occur. Also, I think the downside from here is limited over the short term. Therefore, I would recommend being Delta neutral, although I don't necessarily have a problem with being Delta long, seeing as this ETF is quite oversold. It's just that I would favor Delta neutral over it.

tight iron condor as opposed to iron fly

would need a big rally or meltdown to take out B/E

$USO - oil continues to have high IV, and a couple weeks ago I had a trade in $USO as an idea. I think it would be OK to ladder this trade into the previous trade, so long as doing so doesn't break your max risk parameters.

Iron fly centered on 13.5

based on trend, a slightly bearish trade

Keep some cash / margin on hand in case these developments in global markets lead to more increases in the $VIX.

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