I think approaching trading by saying I want to make X dollars a day or a week is how people end up losing money. The market is not told how much money to give you and obliges. A system approach is based on seeing market opportunities and taking them, not saying I have to make this much each day or week. I have found that in all fairness the market does not give a shit how much you need to make today. What matters is do you have a method or system that can provide reliable entries for profits over the long-term and you take what the market gives you today.
Back/Ratio call/put spread strategy
- Thread starter stockspy456
- Start date
very nice strategy in extreme oversold positions , buy calls +60 , sell1 -45 , 2 months to expiry.s and p has fallen 100 etc
nice income if willing to do 1 trade to 2 trades a year
in overbought conditions buy put , but premiums kill it
what do you guys think?
nice income if willing to do 1 trade to 2 trades a year
in overbought conditions buy put , but premiums kill it
what do you guys think?
I use this as an insurance in the market , if I am short on futures,it gives me protection against a large move in the market .It only costs <10 on german 30 for november 10800/11000 2 months toexpiry
I've determined, for now, that a back/ratio spread type of a transaction is a great way to enter the market when volatility is very high. Same thing as a vertical. A back/ratio simply makes your position more bullish or bearish. You can certainly create a bullish/bearish vertical, but your max profit on a vertical is much less than your max profit on a back/ratio.
When volatility is very high on options, using either a vertical or a back/ratio to enter a trade benefits me in getting "fair" fill prices. You can immediately close one side of your position if you want.
You will be spending more on fees, but in my opinion, if I spend a few hundred dollars a day on fees, so that I can make a $3k profit, then I consider that simply the "cost of doing business".
When volatility is very high on options, using either a vertical or a back/ratio to enter a trade benefits me in getting "fair" fill prices. You can immediately close one side of your position if you want.
You will be spending more on fees, but in my opinion, if I spend a few hundred dollars a day on fees, so that I can make a $3k profit, then I consider that simply the "cost of doing business".