Stop buying calls on the bounce
You see a selloff. You think it's overdone. So you buy calls.
Then theta eats you alive because vol is through the roof.
There's a better structure for bounces in a high vol world: broken wing call flies. Very short-dated. Zero to three DTE.
You define your risk, keep the premium tight, and if the market snaps back, you can turn 100% or more, quickly.
I paid about $2 for one expiring end of March last week (watch video). The market didn't even bounce the way I wanted. Skew exploded on the selloff and the structure went to $3.50.
Took the money.
When a trade pays you for a different reason than you expected, you take the gift and move on. You don't sit there hoping it pays you twice.
Right now, short-dated flies give you leverage to a bounce without the theta bleed that's killing outright call buyers. Structure must match view + vol regime.
If you can't explain why your structure beats a naked call, get educated.
Volatility first.
Imran
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