Traderfirstyear Bullish Risk Reversal 05072021 скачать в хорошем качестве

Traderfirstyear Bullish Risk Reversal 05072021

  / discord     / traderfirstyear​   https://stocktwits.com/traderfirstyea...   / traderfirst...​   https://www.youtube.com/channel/UCUIE...   / traderfirsty...​   TFY Bullish Risk Reversals - These are posted to Traderfirstyear's Discord - If you like and want more support Tradersfirstyear Patreon Account - :)   / 572021_new_options_position_commoditycyclical   5/7/2021 New Options Position Commodity/Cyclical Inflation Bullish Risk Reversal Traders will maintain a Short Theta & Long Gamma Profile (Quarterly Expiration on Long Calls 6/18/2021 & Monthly Expiration 5/21/2021 on Short Puts to Reduce Overall Cost of Trade) TLDR -Want to Avoid the Small Print (Condensed version of the trade is pretty straight forward it is-Long Vol via short front dated options and a Long Gamma Profile) End Goal make $$$ on commodity price increase :) *Potential Unlimited in profit - (Exposure of 48k this week is short-dated funding to reduce the cost of long vol position) Watch the Video on YOUTUBE Volatility Expectation = 6/18/2021 The market is currently pricing a move of 4.84% +/-(up/down) High 4,375.07 Low 3,980.44 12/31/2021 The market is currently pricing a move of 11.73%+/- (up/down) High 4,662.60 & Low 3,734.98 - 175 EPS 26.64x's or 3.7% Yield inflation adjusted on the 5 year Tips 2.57 = 1.13% Yield(edited) Full Summary & Rationale For Trade - 1st Quarter 2021 Global Commodity shortages lead to future price increases. Analysts do not expect these shortages to last. Companies will restart production and increase capacity following the rollout in Global Covid Vaccinations. Tight commodity markets give investors the opportunity to sell premium to fund a long premium position and attempt to profit from macroeconomic events. Brief on Trading Suggestion; refer to Full Summary The rationale for the Trade; refer to the brief The Risk for the Trade; The risk is twofold. The first leg of the trade is the funding leg, which is done through selling Put option premium. Traders are short volatility to capture income to reduce the cost of the overall trade. This leg faces substantial risk from an increase in realized volatility, For example, if the individual stocks move down more than 5% or10%, the trader faces the risk of covering at a loss. The second leg of the trade, which is long volatility via the purchase of long calls faces some risk if realized volatility falls or remains stagnant. If the implied volatility is substantially less than realized the trade profitability could be hampered. What traders would like to see happen is realized volatility higher than what is implied on the position we are long (call) and lower on the positions we are short (puts), which is used to fund the long position.