04-15-2020, 10:11 AM
(04-15-2020, 09:54 AM)fenders53 Wrote: Closed my USO puts for a 29.6% gain in about two weeks. Kept a single put open so I will be forced to track it. It didn't move like I thought it would vs USO but I got the general direction right. I have much to learn.
Nice play.
The premiums/implied volatility on put options are so high that, absent consistently big circuit-breaker moves like the market had several weeks back, it is hard to get the 100+% moves that were easy when the VIX was half what it is now. I've been playing around with ideas on various options profits calculators, and the size of the moves needed for breakevens at expiry is staggering for most of the stuff I've looked at.
Put in for futures trading approval with one of my brokerages, as I eventually intend to go long crude directly (rather than through USO).