Search a title or topic

Over 20 million podcasts, powered by 

Player FM logo
Artwork

Content provided by tastylive. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by tastylive or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://staging.podcastplayer.com/legal.
Player FM - Podcast App
Go offline with the Player FM app!

Market Measures - May 5, 2025 - Can Strangles Bounce Back After Big Drops

20:26
 
Share
 

Manage episode 480726300 series 68544
Content provided by tastylive. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by tastylive or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://staging.podcastplayer.com/legal.
Research reveals that strangles with more volatile underlyings demonstrate different recovery patterns after significant losses. When positions drop below 50% of initial credit, ETFs like SPY show better recovery potential than individual stocks. Among studied assets (SPY, QQQ, gold, Amazon, Apple, Google), Apple strangles carried the highest risk profile with a 22% large loss risk compared to SPY's 13%. SPY offered the best risk-return profile with 74% probability of profits and only 5% chance of total loss due to diversification. The study concludes that while higher volatility underlyings offer larger credits, they experience more volatile P&L swings and are less likely to recover after substantial drawdowns, suggesting more conservative loss management for these positions.
  continue reading

1566 episodes

Artwork
iconShare
 
Manage episode 480726300 series 68544
Content provided by tastylive. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by tastylive or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://staging.podcastplayer.com/legal.
Research reveals that strangles with more volatile underlyings demonstrate different recovery patterns after significant losses. When positions drop below 50% of initial credit, ETFs like SPY show better recovery potential than individual stocks. Among studied assets (SPY, QQQ, gold, Amazon, Apple, Google), Apple strangles carried the highest risk profile with a 22% large loss risk compared to SPY's 13%. SPY offered the best risk-return profile with 74% probability of profits and only 5% chance of total loss due to diversification. The study concludes that while higher volatility underlyings offer larger credits, they experience more volatile P&L swings and are less likely to recover after substantial drawdowns, suggesting more conservative loss management for these positions.
  continue reading

1566 episodes

All episodes

×
 
Loading …

Welcome to Player FM!

Player FM is scanning the web for high-quality podcasts for you to enjoy right now. It's the best podcast app and works on Android, iPhone, and the web. Signup to sync subscriptions across devices.

 

Listen to this show while you explore
Play