tag:blogger.com,1999:blog-1520302325239963360.post7714546394166261677..comments2024-01-23T14:04:29.555-08:00Comments on Risk Laboratory: Ophir Gottlieb: * Netflix (NFLX) - All-time Highs & One of the Greatest Trading Opportunities EverOphir Gottliebhttp://www.blogger.com/profile/14504557662647338626noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-1520302325239963360.post-14874398095631269972014-07-09T09:18:37.615-07:002014-07-09T09:18:37.615-07:00Thank you, VW!Thank you, VW!Ophir Gottliebhttps://www.blogger.com/profile/02699643319377083669noreply@blogger.comtag:blogger.com,1999:blog-1520302325239963360.post-37454624427565436212014-07-08T19:56:00.065-07:002014-07-08T19:56:00.065-07:00Brilliant work, once again. I admire your work sir...Brilliant work, once again. I admire your work sir....@volatilitywiz on ST...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1520302325239963360.post-44281235224561275592014-07-02T09:24:42.998-07:002014-07-02T09:24:42.998-07:00Hello, Douglas. Thanks for the note.
In general w...Hello, Douglas. Thanks for the note.<br />In general what I have seen is that the volatility through the ATM straddles has been priced too low. That trend will end at some point either b/c stocks will stop moving so much, or volatility will rise to reflect that increased risk. Unless one takes a naked volatility position, one approach is to choose a portfolio those names which selling the ATM vol is a comfortable position while buying the volatility in other names. In both cases, going naked shorty or long is likely too much risk.<br /><br />If you want to focus on one stock and purchase volatility you can do several things:<br />1. Purchase naked options (straddles, strangles)<br />2. Purchase vega long spreads (call spreads and put spreads)<br />3. Purchase vega long time spreads (long the back month, short the front month)<br />4. #3 with offset strikes.<br /><br />Legal Stuff:<br />Options involve risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade options, and must meet suitability requirements.<br /><br />I specifically disclaim any liability, whether based in contract, tort, strict liability or otherwise, for any direct, indirect, incidental, consequential, or special damages arising out of or in any way connected with access to or use of the site, even if I have been advised of the possibility of such damages, including liability in connection with mistakes or omissions in, or delays in transmission of, information to or from the user, interruptions in telecommunications connections to the site or viruses.<br /><br />Ophir Gottliebhttps://www.blogger.com/profile/02699643319377083669noreply@blogger.comtag:blogger.com,1999:blog-1520302325239963360.post-10938643939221244122014-07-01T21:41:45.798-07:002014-07-01T21:41:45.798-07:00Hi Ophir, we chat occasionally on Twitter under th...Hi Ophir, we chat occasionally on Twitter under the handle fleischut, I always enjoy your thoughts and read the blog although I haven't written you before. I'm just curious how you would take advantage of this misplacing of vol. Long strangles? Interesting thing with NFLX is there are these amazing and fairly random bursts but then long periods of relative sideways. Not sure how to play this one, except, honestly, to swing for the fences and buy far OTM January puts. Have taken small swings with it in both directions over the last few months, always entertaining, that's for sure. Best wishes and many thanks for an always informative blog.Douglas Fleischuthttp://www.languageremoval.comnoreply@blogger.com