Straddle RV for ETF’s

[candreouTrade 59]

@Yowster, @Kim I know this comes up from time to time, but would it be benifical in anyway to have the RV values of non stocks? For example for the SPY etf?

 

if so what is it we would want to plot exactly and how could we use it?

 

I guess we don’t have earning dates for this, so what we need instead? Maybe just the month ends for the last 5 iterations or so? 

[Yowster 9,174]

59 minutes ago, candreouTrade said:

@Yowster, @Kim I know this comes up from time to time, but would it be benifical in anyway to have the RV values of non stocks? For example for the SPY etf?

 

if so what is it we would want to plot exactly and how could we use it?

 

I guess we don’t have earning dates for this, so what we need instead? Maybe just the month ends for the last 5 iterations or so? 

I think for indexes, seeing their IV chart is fine.  There are no earnings cycles to compare against, it more about entering certain trades when volatility is high or others when volatility is low - and you can see that in IV charts (or even based simply on where the VIX is at).

[Manish71 28]

8 hours ago, Yowster said:

I think for indexes, seeing their IV chart is fine.  There are no earnings cycles to compare against, it more about entering certain trades when volatility is high or others when volatility is low - and you can see that in IV charts (or even based simply on where the VIX is at).

@Yowster, For ETFs how does one play the option strategies ? Like you mentioned above the only parameter one can look at is the IV. I guess the risk might be less but the rewards will be less also trading ETFs. 

 

Is that the reason SO does not do ETF trades ?

 

[Yowster 9,174]

11 minutes ago, Manish71 said:

@Yowster, For ETFs how does one play the option strategies ? Like you mentioned above the only parameter one can look at is the IV. I guess the risk might be less but the rewards will be less also trading ETFs. 

 

Is that the reason SO does not do ETF trades ?

 

Indexes and ETFs are similar, we do SPX butterflies when IV is elevated.   We also have XLV butterfly on now.    When the market is more "normal"  most of the SO trades are based on companies earnings cycles.