Any of you tried this and what do you all think of it?
https://datadrivenoptions.com/1-1-2-2-put-ratio-trade/
https://datadrivenoptions.com/1-1-2-2-put-ratio-trade/
1122 strategy
- Thread starter Temujin79
- Start date
You can essentially ignore any trader who says "selling an out of the money debit spread"
But his strategy is actually collect credit by selling otm put soreadYou can essentially ignore any trader who says "selling an out of the money debit spread"
Whether you are paying/receiving premium is irrelevant to whether you are buying/selling the spread
In this case the OP claims to be
- selling for a credit
- a debit spread
He's just mangling the terminology, which might not seem important but can lead to expensive execution errors, and why you should question the credibility of the post.
Matt_ORATS
Sponsor
Yes, I am testing this set up. This is a paper trade sold for 0.40 now up 0.10.
It is called a bear trap using puts. It can be used with calls too, bull trap.
It is basically 1:10 risk reward which is not great.
It is called a bear trap using puts. It can be used with calls too, bull trap.
It is basically 1:10 risk reward which is not great.
In reallity, just a form of broken/raised wing condor
In your example
Core Position is 195-197-198-200 Put Condor
+ embedded 193-195 / 193-197 Verticals
Most traders should, but don't evaluate whether risk/reward of selling FOTM Put Verticals are worthwhile as premium can realtively small