If you get assigned why not do the same thing on the upside as well? If you're assigned shares do the 1:2 ratio spread by buying a 40 delta call and selling two 30 delta calls against it. Just like on the put side it would limit your premium but you'll make a little extra on your way out.
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Retired, 450k fun money, lets see what happens - SPY Options
- Thread starter Wise Old Man
- Start date
If you get assigned why not do the same thing on the upside as well? If you're assigned shares do the 1:2 ratio spread by buying a 40 delta call and selling two 30 delta calls against it. Just like on the put side it would limit your premium but you'll make a little extra on your way out.
I like it.If you get assigned why not do the same thing on the upside as well? If you're assigned shares do the 1:2 ratio spread by buying a 40 delta call and selling two 30 delta calls against it. Just like on the put side it would limit your premium but you'll make a little extra on your way out.
Have a journal going on butterflies as weekly plays at the moment. Plan to start doing the wheel in SPY around March and will keep a journal on it.Much appreciated. Wishing you the best of luck as well!
So if I'm understanding you correctly, you're taking the premium from the cash secured 30 delta put to finance purchasing a 40 delta/30 delta put vertical so that you will make a little more on the way down? It would probably work pretty well in a choppy market but underperform in a very bullish market. To the downside, you get your entry plus a bit of profit from the put spread, but when the market continuously breaches new highs, you'll make less in premium sales.
I hope you make your own journal about this. Would love to see how your results compare to the more traditional wheel strategy.
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In other news...
+$3228
SOLD -12 DIAGONAL SPY 100 (Weeklys) 22 JAN 21/15 JAN 21 373/371 PUT @2.69
+$2076
SOLD -12 DIAGONAL SPY 100 (Weeklys) 29 JAN 21/22 JAN 21 377/373 PUT @1.73
SOLD -12 DIAGONAL SPY 100 (Weeklys) 29 JAN 21/22 JAN 21 377/373 PUT @1.73
+$2076
SOLD -12 DIAGONAL SPY 100 (Weeklys) 29 JAN 21/22 JAN 21 377/373 PUT @1.73
You had amazing winnings so far, can you please post the overall profit since you started? Thank you!
You had amazing winnings so far, can you please post the overall profit since you started? Thank you!
I got my first assignment with the market pullback this past week. Currently long 1200 SPY shares at 377. I'm down $8k on my current shares not accounting for any of the premium I've brought in. This is my first assignment since I started this journal in November. I'll update again on Monday when I have the opportunity to sell some covered calls against my shares.
Overall totals:
Current Balance: $467,100.15
Profit: $10,982.03 = 2.4%
SPY is currently up 2.7% since I started so still underperforming the overall market, although I am closing in the gap from my previous PnL update. I'm still optimistic that I will outperform the SPY in the longer duration. I've also considered taking some of the premium from the short put to buy call spreads on some mini pullbacks but haven't committed to that as of yet.
Going to sell the weekly calls against it or go further out?I got my first assignment with the market pullback this past week. Currently long 1200 SPY shares at 377. I'm down $8k on my current shares not accounting for any of the premium I've brought in. This is my first assignment since I started this journal in November. I'll update again on Monday when I have the opportunity to sell some covered calls against my shares.
Overall totals:
Current Balance: $467,100.15
Profit: $10,982.03 = 2.4%
SPY is currently up 2.7% since I started so still underperforming the overall market, although I am closing in the gap from my previous PnL update. I'm still optimistic that I will outperform the SPY in the longer duration. I've also considered taking some of the premium from the short put to buy call spreads on some mini pullbacks but haven't committed to that as of yet.
Going to sell the weekly calls against it or go further out?
Weekly is the plan unless we see a more substantial pullback, then I may need to go further out in time.
Currently long 1200 SPY shares @ 377 from last week's short put expiring ITM. Made up most of my unrealized losses on the shares with today's rally and sold some 385 calls against my shares. Looking for an exit right around the prior high.
+$540
SOLD -12 SPY 100 (Weeklys) 5 FEB 21 385 CALL @.45
+$540
SOLD -12 SPY 100 (Weeklys) 5 FEB 21 385 CALL @.45
nice rally for you.Currently long 1200 SPY shares @ 377 from last week's short put expiring ITM. Made up most of my unrealized losses on the shares with today's rally and sold some 385 calls against my shares. Looking for an exit right around the prior high.
+$540
SOLD -12 SPY 100 (Weeklys) 5 FEB 21 385 CALL @.45