Top 10 Trades We're Thankful for in 2022
Nov 21, 2022
When looking at the major asset classes and some of their respective futures products, we see that 2022 has seen a mixed bag in terms of percentage returns year-to-date. Equity Indices and Bond futures have double-digit negative returns at the time of writing, while the Euro and Gold have dropped nine percent and three percent, respectively.
Meanwhile, the energy sector and agricultural space are experiencing positive returns, with Crude Oil futures up 7% YTD and Corn up 12%.
During this time, the VIX has seen a broad range, trading as low as 16, and reaching a high just short of 39.
This year has been full of trades, good, bad, and some even ugly. But there are always a few that stand out putting that bright red cherry on top of our trading sundae! Wishing you and yours a Happy Thanksgiving and a plentiful trading year ahead! Check out some of what we gobbled up this year:
"This year I am thankful for the ZEBRA trade (Zero Extrinsic Back RAtio) and the ratchet trade as management. The first half of this year, Natural Gas went straight up. I placed a ZEBRA (bullish stock replacement) and ratcheted the position all the way to the top, this allowed me to lock in profits and keep my unlimited upside potential. When natural gas finally decided to come back down to earth I had locked in my profits and I could not lose as it fell. Now with an IVR 100+ I am trading jade lizards and strangles to capture some additional premium as we have seen some two way action lately.. UNG is still my biggest winner on the year. " - Liz Dierking
"I am thankful for my SPX put "Broken winged Butterflies" (BWB). Placing one each month since May and sometimes placing multiply strikes in the same month with 100% success. Now I know that's not sustainable but when you start with a +90% probability of success in high volatility - dare to dream!" - Tony Battista
"I'm thankful for my SVXY call zebra after an implied volatility pop this year - SVXY is an inverse volatility tracker, so when volatility pops, SVXY drops, and vice versa. Call zebras are defined risk, stock replacement strategies, so even if SVXY really tanked after entry, risk is defined. SVXY typically rallies nicely when implied volatility collapses, so it's been one of my favorite trades of the year!" - Mike Butler
"I'm thankful first for what I didn't do -- which was getting long the Nasdaq all the way down. I mostly avoided that this year and am only now getting long QQQ via short puts. I'm also thankful that my trades in the Silver ETF (SLV) have worked out even though I didn't always pick the direction correctly. That is the cool thing with selling short puts and calls -- option (theta) decay has worked in my favor." - Dr. Michael "Data" Rechenthin
"This year I'm thankful for short puts in Square. Square has been trading in a range since May. It is a lower priced product with high implied volatility. Selling .30 delta puts and managing at 50% each month has been my most profitable position this year." - Jenny Andrews
"I am thankful for the long diagonal trades I placed in FAANG names. After Q3 earnings, most of the mega-tech names where annihilated as the market repriced them due to the current high inflationary environment. I bought January ITM calls and sold December upside calls in META, AMZN, and GOOGL. All I needed was a big upside move which was provided in the form of a lower-than-expected CPI report. I am very thankful for what turned out to be an early Christmas present." - Jermal Chandler
"I am thankful for the Bond Futures/Options positions I placed in between late September and early November. Seeing high IVs around bond products, I started selling strangles in /ZN to collect rich premium that we hadn't seen for years. Also, I sold puts in /ZN and sold TUT spread (Long 10Y and Short 2Y), speculating that the interest rate would stabilize and climb up again. The bonds fluctuated at the lower range for over a month and eventually took off like a rocket. All my positions were in profit." - Kai Zeng
"I'm thankful for XOP, the gift that keeps on giving. Oil volatility has been a fruitful trade - tons of upside skew, XOP broken wing butterflies have traded for dollars. With big swings in both directions, it's been relatively easy to buy in risk and turn these broken wing butterflies into risk free butterflies for small credits. This johnny has pinned a couple of them this year!" - Nick Battista
"I'm thankful for any directional trade Tom makes. Because taking the other side have been my best trades of the year by far." - Josh Fabian
"I’m thankful for my Euro position I placed in November. Given the strength of the US Dollar this year, the Euro has sunk below the value of the dollar for the first time in several years, so I was playing for a short-term bounce. Due to my account size, I stuck to the micro Euro futures contracts, which is the symbol /M6E and is 1/10th the size of the major contracts. In a few short days, and with a 2% rally in the currency, I squeezed out a nice little profit. Love the two-sided action in here." - Katie McGarrigle
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.
tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on tastytrade.com/disclosures.
tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.
tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.
tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.