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Conservative option strategies, what did you buy or sell today?
(11-14-2020, 08:32 AM)NilesMike Wrote: Interesting study.

https://spintwig.com/spy-wheel-45-dte-ca...Expiration
A lot of interesting data.  It reflects my personal experience. I try not to seek confirmation bias because I am only on year three of high volume option trades and the market has rarely seen 60 days of downward bias.

If I only traded SPY puts I am convinced it's clearly difficult to compete with a pure long position.  The fact that I don't appears to have less downside risk of capital.  I attribute it to several factors.  I can cherry pick some stocks sitting near strong resistance.  I always have some trading cash avalable in rotation and can enter a desired position after a notable dip when the market over-reacts short term in the absence of an overall down market.  (i.e. tiny earnings miss).

My mind remains open regarding optimum DTE.  I continue to hold a diverse range.  When the VIX is high I have had a very good experience with options from 5 to 15 days.  I tend to close them at 75%+ profit.  The exception being when I am fortunate enough to grab 50% in just a few days which frequently occurs in short duration options.
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Messages In This Thread
T puts ? - by john - 03-17-2020, 09:33 AM
RE: T puts ? - by fenders53 - 03-17-2020, 10:32 AM
RE: WEN options update - by john - 03-23-2020, 09:53 AM
RE: WEN options update - by fenders53 - 03-23-2020, 10:40 AM
RE: Conservative option strategies, what did you buy or sell today? - by fenders53 - 11-15-2020, 07:22 AM



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