Another alternative that doesn't require a large account
is to sell bull put speads(rather than naked puts) on the SPX.
I sold 10 2525/2520 verticals on 4/2 (expire 4/6)
for $1.15 credit, below what seemed to be a resonable support
area. My risk on the trade is $3850 to make $1150. I dont
have the capital to make a play like Matt made.
Another alternative that doesn't require
Selling Premium example
Posted by toothdoc on 3rd of Apr 2018 at 11:38 am
Another alternative that doesn't require a large account is to sell bull put speads(rather than naked puts) on the SPX. I sold 10 2525/2520 verticals on 4/2 (expire 4/6) for $1.15 credit, below what seemed to be a resonable support area. My risk on the trade is $3850 to make $1150. I dont have the capital to make a play like Matt made.
thx for posting, great example!
Posted by matt on 3rd of Apr 2018 at 11:48 am
thx for posting, great example! Yes selling naked calls and puts requires a lot of capital, with spreads you don't need it