In a market where irrationality prevails, there are indeed many opportunities. What are the trading opportunities? This question is mainly about whether you decide to take on this risk yourself.Scalping scalp strategyIt may make you feel like the riches are coming so easily, but this kind of market is not always easy to encounter!
Why engage in this strategy?
(1) Believes that a major market rally is imminent, and waits for big fluctuations to make big money using low-cost (even profitable) methods.
(2) The goal is to profit from the increasing volatility.
The method is very simple, but it is better to master the reversal of the short-term market trend so that you can fully capture the Gamma.
- Step 1, observe that the IV index has shown signs of upward movement (using IV from the past week), and establish a buyer's strategy based on this. 【Price volatility tends to have trend and serial correlation tendencies】
In the second step, follow the price fluctuations, buying low at the turning point and selling high.Directional profit and loss has always been the biggest factor affecting options.
What does this strategy profit from? It's the Delta derived from Gamma, which also represents the relative volatility between the options and the underlying assets.
【For example, assuming $Tesla (TSLA.US)$The current price is 320, the option cost is 310, and the Delta value for the exercise price of 380 yuan is 0.0955. This means that when the underlying assets rise by 1%, the option will change as follows:
Change in option price: 310 + (310 × 0.09...