05-09-2022, 08:04 AM
Anyone doing a 1-1-2 trade (buy, sell, sellX2) on futures. It may not sound conservative at first but I'm giving it a road test.
Using Micro ES futures.
Buy a put spread 3650/3620 for a debit of $3.50 ish
Sell 2 puts @ 2550 for $7.20 ish credit. $500 margin used.
Upshot is 3.60ish net credit if market stays above 3650, June expiration. If it goes to 3620, you keep your credit and the gain from 3650 long put.
Loses money below 2533 which 35+% below today's price. Currently 99% probability it expires OTM
Using Micro ES futures.
Buy a put spread 3650/3620 for a debit of $3.50 ish
Sell 2 puts @ 2550 for $7.20 ish credit. $500 margin used.
Upshot is 3.60ish net credit if market stays above 3650, June expiration. If it goes to 3620, you keep your credit and the gain from 3650 long put.
Loses money below 2533 which 35+% below today's price. Currently 99% probability it expires OTM