I choose options with expiration at least 2 months out, can't
get exactly 2 months so sometimes I go a bit less or have to go a
bit more depending on the expiration. For 1st entry I choose
options with a delta of 0.6 - 0.65, for 2nd entries delta 0.5
- 0.6, and rare 3rd entries delta below 0.5, with 2nd entry
2X the options of the 1st, and 3rd entry 3X the options - I
leverage the later entries.
Now is 2 months really needed, heck not, most of the trades are
less than that. If you collectively average the trades the avg hold
time is about 15 days. Some trades in the past got held for over 2
months, and some for a few days.
quite honestly there's so many 'options' pun intended, I could
to or one of you guys can do. I have always suggested that if you
are good with options, please be open to picking and choosing your
own options. One could do spreads, various collars etc. I think 2
months is too long and most of the options could simply have a 1
month expiration - one could always be open to changing out the
options in the middle of the trade if they are open to it. One
could also sell puts against the ETF the gain premium then use that
premium to buy some protective puts. There's so many quote
'options' strategies you could do, so be option to variations based
on the system being long
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
Thanks Matt. Just curious why
Do you have strike price, etc for spy option trade?
Posted by piclez on 7th of Jan 2022 at 05:00 pm
Thanks Matt. Just curious why the 454 strike price and March 18th expiration? I'm trying to learn more about options, thanks.
The options are explained in
Posted by matt on 7th of Jan 2022 at 10:50 pm
The options are explained in the FAQ in the spy system section
https://breakpointtrades.com/new_spy/
I choose options with expiration at least 2 months out, can't get exactly 2 months so sometimes I go a bit less or have to go a bit more depending on the expiration. For 1st entry I choose options with a delta of 0.6 - 0.65, for 2nd entries delta 0.5 - 0.6, and rare 3rd entries delta below 0.5, with 2nd entry 2X the options of the 1st, and 3rd entry 3X the options - I leverage the later entries.
Now is 2 months really needed, heck not, most of the trades are less than that. If you collectively average the trades the avg hold time is about 15 days. Some trades in the past got held for over 2 months, and some for a few days.
quite honestly there's so many 'options' pun intended, I could to or one of you guys can do. I have always suggested that if you are good with options, please be open to picking and choosing your own options. One could do spreads, various collars etc. I think 2 months is too long and most of the options could simply have a 1 month expiration - one could always be open to changing out the options in the middle of the trade if they are open to it. One could also sell puts against the ETF the gain premium then use that premium to buy some protective puts. There's so many quote 'options' strategies you could do, so be option to variations based on the system being long