Chasing unicorns?

[spindr0]

Quote from newguy05:

sell cash covered atm puts on a basket of large/mid cap tickers you want to own for 6+ months, keep doing until you get assigned, then sell atm covered calls on them until it's called away. Change atm to otm as needed depends on your view of particular stock. It obviously depends on your stock picks and market crash will still hurt but overall pretty safe strategy without a lot of management. I been doing it for a while in my retirement account.

I'm using 3 to 3-1/2 times pattern day trading margin intraday so I'm not looking I'm not looking for additional trading ideas. I deal with that all day already.

Yours would be a nice answer if 1) there was anything I wanted to own (I don't), 2) selling CC's was low risk or had a decent R/R (it doesn't) , 3) if I was looking for trading/long term investing ideas (I'm not), or 4) you were replying to someone else (wondering about this one).

Short answer? Your idea has nothing to do with my question.

 

[sle]

Quote from spindr0:

With your option knowledge, you should have some suggestions for a high probability strategy for a low yield that has moderately low risk. Got milk?

I would say dispersion in low volume ETFs is the best capacity constrained strategy around at the moment. My other suggestions would be looking at vol in leveraged ETFs (again, low volume ones are frequently mispriced) and look at earnings vol for mid/small-cap stocks.

I'd be happy to discuss in detail, if anyone is interested - stuck at home supervising a plumber today. Loads of fun, yawn...

 

[atticus]

Quote from spindr0:

That's what I said in my OP. Since I'm already preoccupied with trading, I don't have the time for more trading

With your option knowledge, you should have some suggestions for a high probability strategy for a low yield that has moderately low risk. Got milk?

hahaha. I do, but sle alluded to the scalability. I will only post a position that it is directional, needs help or won't suffer from crowding. I may be an ass, but that's more than most will do.

I do some consulting on the side in which I outline automated setups in vol which has the potential to limit my trading income (crowding argument), but I like to travel and love fine hotels.

 

[atticus]

Quote from sle:

I would say dispersion in low volume ETFs is the best capacity constrained strategy around at the moment

+1

 

[mikeenday]

the holy grail in trading (whatever vehicle you are driving, stocks, future, options...)

the key is: you need to read the prices correctly (in terms of probability) and know where it's moving .

plus money management to make sure not to get eliminated by one bad bet.

Quote from spindr0:

Looking for a conservative strategy that would provide a high probability of success with a low degree of risk where the goal is yield. Low risk is essential since I take risk on in my trading account. This idea would be for stagnant cash not in my trading account.

I'd like something a bit cleverer than suggestions like sell deep ITM CC's (or equiv NP's), or sell deep OTM verticals. Or for that matter, do deep OTM iron condors.

Conversions and reversals would be ideal but I don't have the time ineeded intraday to chase these since legging in is the only way retail gets them (me). In addition, even if I did, if I caught that bounce on the UL, it would make more sense to book it rather than be locked in for X weeks.

For example, I've traded double reverse calendars in the past because I've seen 2-3X reward to risk graphs. The problem with these is that is the IV/price movement combo. Good on high IV if IV contracts, good on low IV if price moves and berry bad if you get the wrong one from each column.

So, has anyone seen any unicorns?

 

[spindr0]

Quote from sle:

I would say dispersion in low volume ETFs is the best capacity constrained strategy around at the moment. My other suggestions would be looking at vol in leveraged ETFs (again, low volume ones are frequently mispriced) and look at earnings vol for mid/small-cap stocks.

I'd be happy to discuss in detail, if anyone is interested - stuck at home supervising a plumber today. Loads of fun, yawn...

Thanks, could you provide add'l detail regarding the dispersion idea? Will that keep you awake?

Thx

 

[spindr0]

Quote from atticus:

I will only post a position that it is directional, needs help or won't suffer from crowding. I may be an ass, but that's more than most will do.

Is there a translation for the first sentence? The second one is crystal clear

 

[sle]

Quote from spindr0:
Thanks, could you provide add'l detail regarding the dispersion idea? Will that keep you awake?

Sure, give me a few min - at this particular moment I have to make a decision that could impact the quality of my life

 

[spindr0]

Quote from sle:

Sure, give me a few min - at this particular moment I have to make a decision that could impact the quality of my life

Thanks. Whether you forget to put the seat up or down could be traumatic

 

[oldtime]

spindro, you know you're not making 1%, your inflation adjusted return is probably-2%, so you should just take 2% of your cash and gamble it since you're going to lose it anyway.