Conservative option strategies, what did you buy or sell today?

[Dividendwayfarer]

(04-12-2022, 03:55 PM)NilesMike Wrote: Sold SPX Call spread after the open and bought it back near today's close for 45% of credit received.

20MAY22 4685/4695

Impressive! Any place you’d recommend me to start with trading SPX? I’ve been doing plain option trading (covered call & cash secured put without margin only). I want to acquire some knowledage/experience to take it to the next level.

[NilesMike]

(04-13-2022, 03:13 PM)Dividendwayfarer Wrote:

(04-12-2022, 03:55 PM)NilesMike Wrote: Sold SPX Call spread after the open and bought it back near today's close for 45% of credit received.

20MAY22 4685/4695

Impressive! Any place you’d recommend me to start with trading SPX? I’ve been doing plain option trading (covered call & cash secured put without margin only). I want to acquire some knowledage/experience to take it to the next level.

This will help you out and keep you busy for awhile-LOL

https://www.elitetrader.com/et/threads/s...der.49586/

What I have cobbled together for this strategy is based on the theory that markets don't crash up. Very few options cycles sees SPX closing 5% the open of the cycle. Very few over the past 30 years in fact. Those that have could mostly be avoided if one didn't sell bear call spreads after a previous cycle was down significantly (>3% or so)

So my short strike is set 5% above the cycle open, long call $10 above and hold until expiration (unless I happen to get a quick hitter like yesterday).

One lot is usually worth $150 while risking/using $850 margin. By time it ever gets near you, if it ever does, you can easily roll it up and out.

Good luck, let us know if you find another winning strat!

[Dividendwayfarer]

(04-13-2022, 07:47 PM)NilesMike Wrote:

(04-13-2022, 03:13 PM)Dividendwayfarer Wrote:

(04-12-2022, 03:55 PM)NilesMike Wrote: Sold SPX Call spread after the open and bought it back near today's close for 45% of credit received.

20MAY22 4685/4695

Impressive! Any place you’d recommend me to start with trading SPX? I’ve been doing plain option trading (covered call & cash secured put without margin only). I want to acquire some knowledage/experience to take it to the next level.

This will help you out and keep you busy for awhile-LOL

https://www.elitetrader.com/et/threads/s...der.49586/

What I have cobbled together for this strategy is based on the theory that markets don't crash up. Very few options cycles sees SPX closing 5% the open of the cycle. Very few over the past 30 years in fact. Those that have could mostly be avoided if one didn't sell bear call spreads after a previous cycle was down significantly (>3% or so)

So my short strike is set 5% above the cycle open, long call $10 above and hold until expiration (unless I happen to get a quick hitter like yesterday).

One lot is usually worth $150 while risking/using $850 margin. By time it ever gets near you, if it ever does, you can easily roll it up and out.

Good luck, let us know if you find another winning strat!

Thanks! It’ll take some time for me to digest so yes it’ll keep me busy for a while.

[NilesMike]

Sold SPX spread today, should have been Monday but was travelling, so I got a better price. As Fenders said, it's good to be lucky.

Sold 4620/4630C for $2.00, risk $8.00
20 MAY 22

30 DTE

[fenders53]

Sold a lot of puts yesterday, and bought a lot of them back today because Mike taught me not to be too greedy.

I like those 1-3 day turn-arounds. I will enjoy while it lasts.

[NilesMike]

(04-19-2022, 06:39 PM)fenders53 Wrote: Sold a lot of puts yesterday, and bought a lot of them back today because Mike taught me not to be too greedy.  

I like those 1-3 day turn-arounds.  I will enjoy while it lasts.

 Gotta ring that cash register!

Good luck to all.

[fenders53]

(04-20-2022, 06:24 AM)NilesMike Wrote:

(04-19-2022, 06:39 PM)fenders53 Wrote: Sold a lot of puts yesterday, and bought a lot of them back today because Mike taught me not to be too greedy.  

I like those 1-3 day turn-arounds.  I will enjoy while it lasts.

 Gotta ring that cash register!

Good luck to all.

If we are in for constant volatility, might as well reset when it makes sense.  For the moment I have the time. Maybe I will just be a daytrader during winter.  My trade volume in March was insanity.  It was also triple my normal expected income so I guess it's a not so part-time job.  I can't quit anytime I want, lol.

[NilesMike]

(04-19-2022, 04:01 PM)NilesMike Wrote: Sold SPX spread today, should have been Monday but was travelling, so I got a better price. As Fenders said, it's good to be lucky.

Sold 4620/4630C for $2.00, risk $8.00
20 MAY 22

30 DTE

I had sold another way out call spread on 4/20

20 MAY 22 4630/4640 for $2.45 at the open and bought it back today for $1.20

Seems one can get a good rhythm with these way OTM call spreads. Sell 'em on a bit of an up move and cash 'em on the down day. $1.25 on $7.55 risk in a day is something we can all enjoy.

[fenders53]

(04-21-2022, 05:19 PM)NilesMike Wrote:

(04-19-2022, 04:01 PM)NilesMike Wrote: Sold SPX spread today, should have been Monday but was travelling, so I got a better price. As Fenders said, it's good to be lucky.

Sold 4620/4630C for $2.00, risk $8.00
20 MAY 22

30 DTE

I had sold another way out call spread on 4/20

20 MAY 22 4630/4640 for $2.45 at the open and bought it back today for $1.20

Seems one can get a good rhythm with these way OTM call spreads. Sell 'em on a bit of an up move and cash 'em on the down day. $1.25 on $7.55 risk in a day is something we can all enjoy.

Reasonable volatility is our friend. I suspect we won't run out soon.

[NilesMike]

(04-21-2022, 06:14 PM)fenders53 Wrote:

(04-21-2022, 05:19 PM)NilesMike Wrote:

(04-19-2022, 04:01 PM)NilesMike Wrote: Sold SPX spread today, should have been Monday but was travelling, so I got a better price. As Fenders said, it's good to be lucky.

Sold 4620/4630C for $2.00, risk $8.00
20 MAY 22

30 DTE

I had sold another way out call spread on 4/20

20 MAY 22 4630/4640 for $2.45 at the open and bought it back today for $1.20

Seems one can get a good rhythm with these way OTM call spreads. Sell 'em on a bit of an up move and cash 'em on the down day. $1.25 on $7.55 risk in a day is something we can all enjoy.

Reasonable volatility is our friend. I suspect we won't run out soon.

That is part of it but I think it may also be more a function of SPX being so expensive that the premiums are still good when going waaaaaaay OTM.

[fenders53]

Overvalued SPX has been going on for years so I guess I don't know. Seems it was more overvalued a quarter ago.

[NilesMike]

(04-22-2022, 08:56 AM)fenders53 Wrote: Overvalued SPX has been going on for years so I guess I don't know. Seems it was more overvalued a quarter ago.

I didn't mean overvalued, just a high priced underlying.