Posted by DigiNomad on 29th of Jul 2022 at 11:43 am
Corrected strikes: fredsaid - yes, selling call spreads in SPX
right now. My first layer was AUG 4185/4285 (back when vix was low
30's) and my latest is SPX 4350/4450. I try to sell strikes between
16 and 20 delta and then reduce capital requirements and risk by
spreading it out with a long put or call. With the VIX down here,
it's starting to be tempting to go long vol, but my system is much
less complicated when I keep it to selling premium instead of
buying it. I make a few exceptions here and there to play
single stocks, but with short premium, I can always see exactly how
much I have "on the board" for any given expiry and use that to hit
my monthly income targets.
Posted by DigiNomad on 29th of Jul 2022 at 12:10 pm
Imelhoe - used AUG 18 for the 1st tranche (short SPX 4185) and
SEP 15 for the 2nd tranche (short 4350 - started
yesterday and added to this morning).
TBH - the returns aren't great with VIX at this level, but I
like to keep it mechanical as much as possible. So I tend to accept
lower returns during low vol periods. Most options traders move
away from indexes when the VIX drops in order to achieve higher
returns for a given capital outlay...but I like the relative safety
inherent in the indexes and capital isn't really my limiting
factor...for me it's more about managing overall risk.
Posted by DigiNomad on 29th of Jul 2022 at 12:43 pm
tmbrook1 - that screenshot is from Interactive Brokers (click
the "performance" box when reviewing a trade), but I typically use
either ThinkorSwim or Tasty Works to analyze option trades and then
I execute them on Interactive Brokers. They all have about the same
capabilities, but some are easier to use than others.
Corrected strikes: fredsaid - yes,
coming up near the 38% Fib retrace from the early Jan highs to June lows
Posted by DigiNomad on 29th of Jul 2022 at 11:43 am
Corrected strikes: fredsaid - yes, selling call spreads in SPX right now. My first layer was AUG 4185/4285 (back when vix was low 30's) and my latest is SPX 4350/4450. I try to sell strikes between 16 and 20 delta and then reduce capital requirements and risk by spreading it out with a long put or call. With the VIX down here, it's starting to be tempting to go long vol, but my system is much less complicated when I keep it to selling premium instead of buying it. I make a few exceptions here and there to play single stocks, but with short premium, I can always see exactly how much I have "on the board" for any given expiry and use that to hit my monthly income targets.
Cool
Posted by fredsaid on 2nd of Aug 2022 at 01:31 pm
Cool
Hi Digi Nomad , are
Posted by imelhoe on 29th of Jul 2022 at 11:56 am
Hi Digi Nomad , are you using august 19 expirtion for your spx call credit spreads or Sept 1?
Imelhoe - used AUG 18
Posted by DigiNomad on 29th of Jul 2022 at 12:10 pm
Imelhoe - used AUG 18 for the 1st tranche (short SPX 4185) and SEP 15 for the 2nd tranche (short 4350 - started yesterday and added to this morning).
TBH - the returns aren't great with VIX at this level, but I like to keep it mechanical as much as possible. So I tend to accept lower returns during low vol periods. Most options traders move away from indexes when the VIX drops in order to achieve higher returns for a given capital outlay...but I like the relative safety inherent in the indexes and capital isn't really my limiting factor...for me it's more about managing overall risk.
tks very much for your
Posted by imelhoe on 29th of Jul 2022 at 12:28 pm
tks very much for your analysis!!
This is my next layer
Posted by DigiNomad on 29th of Jul 2022 at 12:18 pm
This is my next layer for SPX.
14% return/risk with 82% profit probability is about what I look for. 10% return/risk and 80% probability is my floor.
What is the platform you
Posted by tmbrook1 on 29th of Jul 2022 at 12:35 pm
What is the platform you are using for this display of information.
tmbrook1 - that screenshot is
Posted by DigiNomad on 29th of Jul 2022 at 12:43 pm
tmbrook1 - that screenshot is from Interactive Brokers (click the "performance" box when reviewing a trade), but I typically use either ThinkorSwim or Tasty Works to analyze option trades and then I execute them on Interactive Brokers. They all have about the same capabilities, but some are easier to use than others.
Thanks
Posted by tmbrook1 on 29th of Jul 2022 at 12:55 pm
Thanks
What is the platform you
Posted by tmbrook1 on 29th of Jul 2022 at 12:28 pm
What is the platform you are using that displays this information.