Diagonal Put Strategy
- Thread starter cafeole
- Start date
No. His manual is the printed pdf, the dvds are the same videos that are on his website. You have to buy his service to get all the info.
Just thinking about this, I think the protective leg would be quite expensive and not very effective. The problem with weeklies is that to get good premium you need to be close to current price. As stock moves up, it’s moving farther away from your hedge. I think it’s just easier to pitch to customers (including margin and options level required)
I would rather do cash secured weekly puts on the usual suspects, willing to take shares ... which turns into the wheel. Just thinking out loud. BTW, he claims that the edge comes from reading market cycle, etc. So it becomes swing trading with options.
I would rather do cash secured weekly puts on the usual suspects, willing to take shares ... which turns into the wheel. Just thinking out loud. BTW, he claims that the edge comes from reading market cycle, etc. So it becomes swing trading with options.
He does say to sell the weekly strike closest to the money. He chooses his stocks based on a company that upgrades their earnings to the upside. I don't see how he gets a lot of opportunities this way, but he claims he does.
For me, I wouldn't sell so close to the money.
At this point I am not too interested in using options in place of stock.
For me, I wouldn't sell so close to the money.
At this point I am not too interested in using options in place of stock.
Below is kind of interesting. Anyone has any thoughts on this?
“The second strategy is what I call “Pinning.”
Around 80% of the market’s trading volume is pushed around by the institutional-sized investors. They create unique trading opportunities every single Friday.
Especially on the bigger stocks, and especially later in the trading day as they start settling close to a strike price.
And the opportunity here is there’s still a lot of premium left even with an hour or two left before expiration.
And with “Pinning” I teach you how to go in and capture this premium and put it in your pocket.
Now this can result in 30-40% gains in the money invested in just an hour or two.
It is hard to beat the rate of return on a “Pinning” trade on Fridays. It is downright exciting.”
Here is related article
https://investingwithoptions.com/blog/2011/11/18/option-pinning-option-expiration-guide/
“The second strategy is what I call “Pinning.”
Around 80% of the market’s trading volume is pushed around by the institutional-sized investors. They create unique trading opportunities every single Friday.
Especially on the bigger stocks, and especially later in the trading day as they start settling close to a strike price.
And the opportunity here is there’s still a lot of premium left even with an hour or two left before expiration.
And with “Pinning” I teach you how to go in and capture this premium and put it in your pocket.
Now this can result in 30-40% gains in the money invested in just an hour or two.
It is hard to beat the rate of return on a “Pinning” trade on Fridays. It is downright exciting.”
Here is related article
https://investingwithoptions.com/blog/2011/11/18/option-pinning-option-expiration-guide/
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Either the above is poorly worded or incorrect.
He buys 2 strikes ITM Put 3 months out.
He sells a weekly ATM put.
This strategy is also known as a poor man's covered call. Whether you do the trade with puts or calls does not matter, due to put-call parity.
Overall, I think it's a good strategy. It can also be thought of as covered call writing with a protective put at a further expiration than the short calls. Managing this strategy can be a bit more complicated than covered calls, naked puts, or verticals because the delta of the position can change signs.
Overall, I think it's a good strategy. It can also be thought of as covered call writing with a protective put at a further expiration than the short calls. Managing this strategy can be a bit more complicated than covered calls, naked puts, or verticals because the delta of the position can change signs.
