OT Question

[shMark]

So I read about two ways to use the DITM leap strategy. One is just to use it with calls. The other is based on technical signals, switch between calls and puts. I am leaning towards the calls only method. Thoughts?

 

[poopy]

You all suck at directional spec so only trade call spreads. Long the 70-delta and short ATM. Preferably long delta flies but that would involve being able to think, critically.

 

[shMark]

You all suck at directional spec so only trade call spreads. Long the 70-delta and short ATM. Preferably long delta flies but that would involve being able to think, critically.

They are totally different strategies. Going long with a DITM call on SPY is just leverage. Since the market goes up more than it goes down, it should work over the long term. Spreads are like arbitrage. A lot of small trades that make small profits. My concern is if I switch between puts and spreads based on technical indicators is that I will be whipsawed.

 

[poopy]

My point is that you need a discount to intrinsic (short gamma) to achieve + results. The LEAPS will still have a significant vega-component.