What Option Strategy Do You Use?

[bln]

You mean SPY or ES?
Can't take delivery of SPX

I'll take syntetic delivery by putting in a MOC order in advance for equal dollar amount in ES, SPY, VOO, whatever

 

[Sweet Bobby]

I trade the 1-1-2 trade in /ES. Buy a 50 point wide put debit spread at 129 DTE for about $10. Then sell two five delta naked puts in the same expiration.

Close the naked puts at 95% profit or at 30 DTE. Put on a new trade each week. After 15 weeks I close one trade and put on another trade.

Most times the put debit spread is a full loss at expiration. Occasionally, you get profits when price moves inside the tent structure. This has been a wonderfully consistent trade for me.

 

[ironchef]

I trade the 1-1-2 trade in /ES. Buy a 50 point wide put debit spread at 129 DTE for about $10. Then sell two five delta naked puts in the same expiration.

Close the naked puts at 95% profit or at 30 DTE. Put on a new trade each week. After 15 weeks I close one trade and put on another trade.

Most times the put debit spread is a full loss at expiration. Occasionally, you get profits when price moves inside the tent structure. This has been a wonderfully consistent trade for me.

Welcome back. Have not seen you around lately.

Sounds like you are doing well.

Questio: What is the purpose of the debit spread?

 

[Windlesham1]

Options sellers destroy real value. It's no surprise the VIX has been tanking along the bottom.

 

[newwurldmn]

Options sellers destroy real value. It's no surprise the VIX has been tanking along the bottom.

don’t you sell options/vol via spreads?

 

[Windlesham1]

don’t you sell options/vol via spreads?

I'm not an out and out seller I construct strategies with various expiries, so while I maybe nett short I'm still enjoying the regular profits from owning some options. I just have no time for naked put sellers and the Robin Hood crowd

 

[newwurldmn]

I'm not an out and out seller I construct strategies with various expiries, so while I maybe nett short I'm still enjoying the regular profits from owning some options. I just have no time for naked put sellers and the Robin Hood crowd

I trade naked short vol all the time and while I get whacked once in a while it’s worked pretty well.

I also do structured trades too and am occasionally long gamma/vega.

 

[ironchef]

I trade naked short vol all the time and while I get whacked once in a while it’s worked pretty well.

I also do structured trades too and am occasionally long gamma/vega.

1. Why don't you do butterfly instead of naked short?

2. Long gamma/vega, but the devil is in the details.

 

[Quanto]

1. Why don't you do butterfly instead of naked short?

Yes, I too would like to use Butterfly, but it requires MarginAcct while I prefer CashAcct...
I think the situation with many IRAs is just like with CashAcct.

 

[taowave]

Are you referring to Flys??

Flys are not necessarily Long gamma/Vega,esp ATM

They can be structured as such

Think about it

1. Why don't you do butterfly instead of naked short?

2. Long gamma/vega, but the devil is in the details.