Some time ago, we talked about it when the Hong Kong Stock Exchange and Hong Kong stocks were both at a low point. The general logic is also very simple. The Hang Seng may not have a bottom in the short term, but the Hong Kong Stock Exchange is a company that continues to make money, and it makes a good profit. Although Singapore has intercepted a lot of industries and talents from HK, in the securities market, the Hong Kong Stock Exchange is definitely still a relatively stable target. Although the Hong Kong Stock Connect is quite lame, after all, so many state-owned enterprises and central enterprises also need overseas capital exchanges and exports, so Hong Kong stocks are definitely much more convenient than others exchanging foreign currency to buy them. Considering the terrifying 20% ​​discount on the AH price that has always existed, it directly makes foreigners cry with envy.

The Hong Kong Stock Exchange finally pulled up today. I cleared all the naked calls, and the spread continued to move forward and ROLL UP to a farther place (moving farther and requiring higher odds, for example, I opened a 310-330 medium-term option here, with an odds of about 1 to 6)

You can usually look at the option chain quotes of signalplus and you will understand that basically the spread odds near the ATM are very bad, about 1 to 2, but if there are some fluctuations, such as around DELTA0.2, it can reach 1 to 5. This unilateral betting strategy is very comfortable, at least much better than naked buying

The biggest advantage of the spread compared to naked buying options is that THETA decays very slowly, and there will be no big loss if you really accept the stop loss at any time.

For example, here I opened a far-end two-cake 3500-4000 bull market spread, bullish, the maximum profit point is 4000, that is, the put option end is full, and the call option also gets full profit.

But in fact, my 0.15 DELTA exposure only cost 0.7 theta per day, which is very profitable. And the vega is only slightly exposed, which is hard to see in many combinations.

If I really want to make an analogy, I think the spread is actually very similar to the small bets in the football world. For example, when two football teams play, I think the score of team A falls between 2-4. The odds are very high, and as the score continues to rise, the probability of this spread continues to increase, pushing up the achievability of this combination.

There are a lot of dry goods today, I will talk about it here first, and you can slowly digest the details. The video should be released today to recommend a new strategy to everyone, RR spread

By the way, the recent IV of ETH is really comfortable, VEGA and theta are eaten and taken together. Pay attention to the entire picture below. Although there are more than 1,000 thetas every day, when it is actually reflected in the above picture, there is not much blue.

Because many Greek letters will be converted into theta before expiration, but if they are not due, or the market changes, profits and losses will be realized in the form of other letters. It's like you bought an Apple phone, and in the long run it is consumed by depreciation costs, but it was suddenly broken today, this is a gamma crit... If you don't buy Apple Care, you don't buy PUT, and you have to carry VEGA yourself

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