Ok, this has probably been asked a million different ways. BUt I am looking for a relatively easy to understand strategy to generate about $500 a week. I have settled into a put credit spread for now. Recent trade with QQQs at $409 was selling a $403 put for 0.68 then buying a $378 put for $0.07. The max profit is the spread between the 2 so 69-7= $1.24 and the max loss is confusing. https://www.macroption.com/bull-put-spread-payoff/ Any suggestions on a strategy like this that works?
Best and easiest strategy for consistent profits?
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That's your trade: https://optioncreator.com/stz1xus
For the net margin requirements see the formulas here for "Bull (Credit) Put Spread".
One should calculate the PnL% in respect to the initial margin requirement.
IMO a too much risky trade.
There are much better options trades possible with stock options of companies with small MktCap (ie. those companies in the SmallCap and MidCap lists --> see the scanner here)...
For the net margin requirements see the formulas here for "Bull (Credit) Put Spread".
One should calculate the PnL% in respect to the initial margin requirement.
IMO a too much risky trade.
There are much better options trades possible with stock options of companies with small MktCap (ie. those companies in the SmallCap and MidCap lists --> see the scanner here)...
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Easiest is to buy 500k of short term treasuries.
and first have deep pockets to roll - and the knowledge also helps..
You could turn a few tricks over on Kensington Ave.
J/K....This market is too low IV for me. I am picking and choosing my opportunities like VIXperations. I am not sure how many more we are going to get. Its the Santa Claus rally time.
https://vanlifewanderer.com/2022/08/03/kensington-ave-philadelphia/But you can't trade VIX itself (b/c it's an index, not a stock or ETF), only its options can be traded.
How does your calculation looks like now?
How much do you think is realistically possible with VIX options with a maturity of upto 3 months or so?
Do you mean buying single Calls or shortselling single Puts, or rather trading a multi-leg strategy like the Put credit spread of the OP?
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Yeah, roll with @MarkBrown who hasn't made a dime in the mkts since Kennedy was in office.
Obv index puts trade over calls, but cs trade over ps as the revenue side of the skew is in call verts (OTM on all). So ideally you'd trade near (within 30D strike) cs (call spreads). Trade neutral delta at inception (with underlying) to keep you from sizing too large.
It's not something that I would do, but it beats shorting naked puts. Do not average in/roll losses. Since there is no edge here you cover at discrete unit gains and redeploy at market close.
Obv index puts trade over calls, but cs trade over ps as the revenue side of the skew is in call verts (OTM on all). So ideally you'd trade near (within 30D strike) cs (call spreads). Trade neutral delta at inception (with underlying) to keep you from sizing too large.
It's not something that I would do, but it beats shorting naked puts. Do not average in/roll losses. Since there is no edge here you cover at discrete unit gains and redeploy at market close.
There are huge drawdown risks selling puts from time to time. There is no such easy consistent strategy you want. You need to put in a lot of work and doing a lot of research and testing to find such an edge. Do not expect free money with options making consistent gains here.