The new strain has been confirmed in the US and the vaccine rollout is still sluggish and messed up, so the above are in effect. The trades I made so far are buying out-of-the-money calls on VXX (volatility) and puts on USO (oil) and JETS (airlines) all for February-March. I’ll hold until the market has a clear, COVID related drop or until these options all expire worthless and I take the cap gains write-off. And I’m HODLing all crypto although that’s not particularly related to COVID. I’m not in any way confident that this is wise/useful, but people asked.
I did similar trades to yours- call on VXX, and put on JETS (nothing on USO, as I don’t think it can get much lower than it already is).
As the market doesn’t react to the rising case numbers in the US (and maybe more importantly, in Ireland, where they have a horrible outbreak), do you think the market might just factor the coming outbreak as a net positive, since everyone will be either vaccinated or immune after it?
Also, vaccine distribution in the US seems to be accelerating, the British strain seems to be a bit less contagious than thought in December, and otherstrains that might or might not be affected by the vaccine were discovered. Have you changed any of your investment plans?
Personally, I have options for both March and June, so I will either sell in a COVID related crsis, or sell the March ones at the first reasonable opportunity after March 1st, and the June ones at the first reasonable opportunity after May 1st, but I’m not sure how optimal that is.
The new strain has been confirmed in the US and the vaccine rollout is still sluggish and messed up, so the above are in effect. The trades I made so far are buying out-of-the-money calls on VXX (volatility) and puts on USO (oil) and JETS (airlines) all for February-March. I’ll hold until the market has a clear, COVID related drop or until these options all expire worthless and I take the cap gains write-off. And I’m HODLing all crypto although that’s not particularly related to COVID. I’m not in any way confident that this is wise/useful, but people asked.
Trade off to a promising start :P
I did similar trades to yours- call on VXX, and put on JETS (nothing on USO, as I don’t think it can get much lower than it already is). As the market doesn’t react to the rising case numbers in the US (and maybe more importantly, in Ireland, where they have a horrible outbreak), do you think the market might just factor the coming outbreak as a net positive, since everyone will be either vaccinated or immune after it? Also, vaccine distribution in the US seems to be accelerating, the British strain seems to be a bit less contagious than thought in December, and otherstrains that might or might not be affected by the vaccine were discovered. Have you changed any of your investment plans? Personally, I have options for both March and June, so I will either sell in a COVID related crsis, or sell the March ones at the first reasonable opportunity after March 1st, and the June ones at the first reasonable opportunity after May 1st, but I’m not sure how optimal that is.
What brokerage do you use?
That screenshot is the Robinhood UI, so looks like he uses Robinhood.
Are you tempted to drop or reduce the size of this trade in light of the UK seeming to have (roughly speaking, for now at least) contained B.1.1.7?
I asked, thanks for the tips!