As we collectively try to fight the boredom of the end of the trading year, I offer you a simple and straightforward idea: shorting HYG with a stop at 81.25, just above its price gap.
Short High Yield Bonds
Slope of Hope Blog Posts
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Reverse Iron Condor (by the Director)
For this post I’m going to talk a little bit about a different strategy that goes long in a nondirectional path based on the volatility level of the instrument in question.
For options trading, the price of the options depends on again a) the delta or the change in the underlying, b) theta or the inherent time decay of the option, and c) the supply and demand on the option contract itself which is estimated by the volatility of the underlying.
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