11-05-2021, 06:32 AM
One could also hone their option trading craft by using credit spread on the large indices.
It eliminates single name risk (see Z,TSLA, CHGG etc)
MUCH less capital tied up
Great place to start/practice and make a core option selling system, just place your strikes "behind" whatever the chart shows as clear (former) support or resistance. It's the best one can do.
Example, SPY, it looks like the former resistance of 454 was tested and "should" hold-LOL
Sell (2 units) 451/446 Put spread for DEC17 nets $150 using $850 buying power. 17.6% for 42 days or take off at 50% anytime sooner and move on.
Don't get giddy on the winners and don't fret over the losers, there will be plenty of each-LOL
As, I tell the Mrs., it's only money!!
It eliminates single name risk (see Z,TSLA, CHGG etc)
MUCH less capital tied up
Great place to start/practice and make a core option selling system, just place your strikes "behind" whatever the chart shows as clear (former) support or resistance. It's the best one can do.
Example, SPY, it looks like the former resistance of 454 was tested and "should" hold-LOL
Sell (2 units) 451/446 Put spread for DEC17 nets $150 using $850 buying power. 17.6% for 42 days or take off at 50% anytime sooner and move on.
Don't get giddy on the winners and don't fret over the losers, there will be plenty of each-LOL
As, I tell the Mrs., it's only money!!