This is the thread where you can post your contrarian positions which use derivatives to get their exposure (options, ETFs, futures… more exotic?) It is also the place to discuss which derivatives (or derivatives on derivatives) would be the most quality and effective instrument to get the job done for various underlyings.
(I was hoping some of the discussion going on in “trading volatility” could move here)
Have some covered calls written on a gold miner i own.
Price is hot right now
Thats adorable, but not even close to being a contrarian play.
Come back when you have a trade that everyone will throw tomatoes at you for making it.
(Then come back later to brag about how you were right…OR make up reasons for how your disaterous trade did not actaully wipe out your account 
)
short junk like EBAY & TWTR from the open monday.
Are you suggesting or are you going to do it? If so, how? (short the shares, buy the puts, sell the calls, some combination… what date, strike and expiration)
jan.17 puts buy to open.
ebay strike 15. limit .2 - sell @.3
twtr strike 15. limit 1.25 sell @ 1.6
you should only need to hold these a week.
(if the orders get executed, buy some kbe calls as an offsetting strategy)
e.g dec.16 strike 32
(these options are extremely illiquid but i like them).
… i only put an order in so far for ebay… i will watch the premarket…
That’s what I’m talking about!
Hey, what do you mean by the notation “limit.2 sell@.3”?
At first I was thinking, at least with TWTR having earnings in two weeks, that you would buy the puts expiring that week and take advantage in the spike in IV. However, the decay on these near term options really suck. Perhaps the Jan 17 are best.
also, banks to hedge crappy tech… what?
EDIT: oh, duuuhhhh… “limit .2 sell@.3” mean looking to get filled at .2 and the eventual sell target is .3.
s&p = banks + techs = systematic risk
long banks + short tech = risk neutral
why not just SPY calls in the delta that would give you the desired exposure to neutralize your risk?. Those options are very liquid. Banks seem like such a sketchy and unpredictable move right now. (still struggling since brexit… earnings next week)
Not sure that math actually adds up but we’ll roll with it. I like the call simply due to the fact the shorts you picked are crap and I think financials are due
hows everryone doing
I don’t think simon got filled on those orders yet. (am I right?)
I have my short postion on SPY which I took when SPX was at 2120:---------->
_SPY short vertical call spread August expiration. (short 209 strike and long 210 strike) recived .71 to risk .29. (_per contract)
So far the position has only moved agaist me .07 per contact so I’m cool 
no fills here. should have shorted twtr friday doh
Wait eBay and twtr in the same sentence. Help me understand.
BTW, we can now write covered puts against our shorts while we wait.
Guessing a lot of people don’t believe this rally. I was just checking and they are willing to pay big for Oct31 2100 puts on ES futures (just before election). Any slight interday down, and should be able to get a 3% premium payment for holding our shorts another 3 months. Then wait, if the market keeps going up this makes my 2110 shorts profitable until 2173. If the market goes down then I get closed out of my short. Basically I just write into perpituity until they come to their senses, income in a sideways market.
Might do that on part of my short postion, keep part open so partially-hedged against major downturn. Grinding away…
Yea, that’s what those guys on that video were doing. Just patiently carving down their cost basis. You can write puts against your short contracts. You have meat on the bone to manipulate. For myself, my cost risk started out small. I would have to actually increase my risk if I tried to add short put now. I would not be able to get any premium below my cost basis at this point. I’m actually loving my position and the way things are playing out. I’m only down $9/contract. So, go ahead and rally now… the delta on my position is weak. The later the pull back comes, the stronger the delta will be. I’m starting to realize this about contrarian positioning: it is not about timing or even being right. It is about exposure and not being overleveraged. Nailing the exact molment of a pullback is a crap shoot. However, given you are not over exposed, you can clean up almost any mess you get into given time… or better yet, you can afford TO WAIT TO BE RIGHT.
You two are adorable.
Aww, Ghibli. Don’t feel left out. Remember that night we spent together, and the world was falling apart…and I made $45 on a VIX trade
Still a lot of room to the upside…
Oh, the memories…