best way to go long

M

morganpbrown

probably a dumb post, but here goes. I am trading an indicator that predicts direction, and I want positive delta. How would you best do it? (admitting that "it depends" is probably the "answer")

Test account is $50K, so I'm loathe to spend $46K to buy 100 shares of SPY. I could sell naked puts on margin (when I get tier 3 options approval). I could sell put spreads.

What I am actually doing is just buying 80 delta 60 DTE calls (sorta LEAPS). (I guess it's not a horrible time to do so, with volatility probably on the low side of its likely future range.)
 
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newwurldmn said:
Why are you loathe to buy spy stock?

selling puts will earn less unless you take 2x the risk.
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I guess I am fixated on owning 100 shares (even though I could give a crap about selling covered calls anymore), which would leave my $50K account over-concentrated in SPY. Also, it's cheaper to get leverage with options (though I could just buy shares on margin if I was desperate for leverage).
 
morganpbrown said:
probably a dumb post, but here goes. I am trading an indicator that predicts direction, and I want positive delta. How would you best do it? (admitting that "it depends" is probably the "answer")

Test account is $50K, so I'm loathe to spend $46K to buy 100 shares of SPY. I could sell naked puts on margin (when I get tier 3 options approval). I could sell put spreads.

What I am actually doing is just buying 80 delta 60 DTE calls (sorta LEAPS). (I guess it's not a horrible time to do so, with volatility probably on the low side of its likely future range.)
More...
%%
BUY SPY/scale in;
buy sso /scale in only if SPY start$ up soon\ most likely wiil............................................................ I like positive profits more than any options, buts that'$ me. Most likely will do much better than your spy options, but prove it next 12 months. NOT a prediction /not insured by any federal agency/thank God.
Back to my sso up/trendss.........................................................................................[EDIT /SPXL + upro may do well/ but i had trouble getting a UPRO limit fill early today!!!]
 
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murray t turtle said:
%%
BUY SPY/scale in;
buy sso /scale in only if SPY start$ up soon\ most likely wiil............................................................ Me like positive profits more than any options, buts that'$ me. Most likely will do much better than your spy options, but prove it next 12 months. NOT a prediction /not insured by any federal agency/thank God.
Back to my sso up/trendss.........................................................................................
More...

Good point, just buying the leveraged ETF is an even easier way to get leverage. (I said it was probably a dumb question). Options do have a lot of drag...
 
nooby_mcnoob said:
If you're trading the indexes with a $50K account then I suggest micros. No PDT bs, decent leverage, good liquidity.
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Do you mean micro futures? What symbols? (Have been meaning to educate myself on futures, but run short of time in the day)
 
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