Yes, I only trade credit spreads. Much safer, and more
inexpensive than the underlying whether stocks, ES, or Vix. I can
keep all my cash in Treasuries and since I am getting credit for
the trade, I use zero of my own cash. A benefit to credit spreads
that most people don't realize.
Brophy, pls elaborate: are you shorting call spreads and put
spreads? doing any b-flys? what type of time frames - weeklies for
the fast theta decay? enquiring minds want to know...thx
With credit spreads you make money in 2 out of 3 cases: sideways
or in the direction, while with debit spreads only in one case: in
your direction. With credit spreads your risk is not capped, while
with debit spreads you cannot lose more than the amount paid.
I am interested in synthetic options that mimic futures without
a loss of premium due to time decay. I am going to protect my SPY
puts with spreads till a reversal occurs.
I use credit spreads very simply. When I am confident of
direction and that I can keep all if not most of the premium. That
is it. Very simple. People make options more confusing than they
need to be. Spreads in particular. Bear Call Spreads only over the
last few days 5 strikes apart and holding...
brophy, could you mention your trades from yesterday if you did
any after a reversal in the morning? I wanted to sell a credit
spread out of the money (0DTE or with Friday expiry) but did not
get to do that. I should have observed multiple bear flags as
continuation patterns, which were places to sell a credit spread
with a well defined risk.
I watch the SloSto 10,3 as my fav indicator, if stocks bounced
out of BB and back inside, so much better, also other indicators
that give O.B. signals we all on BPT know, neg D plus other
indicators on TOS that I have accumulated over the years. Place
Bear Call Spreads just above the highest day's high, with 5 strikes
between, 100 open interest at least, the more the merrier. Monitor
for continuation. If I expect a shorter-term drop (or rally) I will
place a closing order at 50-% of the premium. I monitor SloSto for
this. See CLX as an example. I like big names with a lot of O.I.
Hope that helps.
I know this is kind of corny but you're mentioning indicators
and various things you've acquired over the years. That's one
benefit of being at BPT as well, we share tips and tricks, and
indicator settings and other things we've learned
everyone here has their own 'traders toolbox' that is full of
various indicators and things they've learned over the years and
that fits their style - and hopefully put those tools or puzzle
pieces together to from part of their trading plan!
yep guys, please share your option strategies when possible - I
like to see how you guys do those spreads and other things that I
typically don't do. Options are not my expertise
For a trend move a call spread is used (a call is bought and
sold with the same expiry). For a consolidation move or a squeeze a
put spread is used to sell premium in order to buy it cheaper.
FWIW.
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Yes, I only trade credit
Is anyone here trading put credit spreads instead of SPY ...
Posted by brophy on 19th of Jan 2023 at 08:25 am
Yes, I only trade credit spreads. Much safer, and more inexpensive than the underlying whether stocks, ES, or Vix. I can keep all my cash in Treasuries and since I am getting credit for the trade, I use zero of my own cash. A benefit to credit spreads that most people don't realize.
Brophy, pls elaborate: are you
Posted by te22 on 19th of Jan 2023 at 09:37 am
Brophy, pls elaborate: are you shorting call spreads and put spreads? doing any b-flys? what type of time frames - weeklies for the fast theta decay? enquiring minds want to know...thx
With credit spreads you make
Posted by junkie on 19th of Jan 2023 at 09:42 am
With credit spreads you make money in 2 out of 3 cases: sideways or in the direction, while with debit spreads only in one case: in your direction. With credit spreads your risk is not capped, while with debit spreads you cannot lose more than the amount paid.
I am interested in synthetic options that mimic futures without a loss of premium due to time decay. I am going to protect my SPY puts with spreads till a reversal occurs.
I use credit spreads very
Posted by brophy on 19th of Jan 2023 at 09:45 am
I use credit spreads very simply. When I am confident of direction and that I can keep all if not most of the premium. That is it. Very simple. People make options more confusing than they need to be. Spreads in particular. Bear Call Spreads only over the last few days 5 strikes apart and holding...
brophy, could you mention your
Posted by junkie on 19th of Jan 2023 at 09:53 am
brophy, could you mention your trades from yesterday if you did any after a reversal in the morning? I wanted to sell a credit spread out of the money (0DTE or with Friday expiry) but did not get to do that. I should have observed multiple bear flags as continuation patterns, which were places to sell a credit spread with a well defined risk.
I watch the SloSto 10,3
Posted by brophy on 19th of Jan 2023 at 10:18 am
I watch the SloSto 10,3 as my fav indicator, if stocks bounced out of BB and back inside, so much better, also other indicators that give O.B. signals we all on BPT know, neg D plus other indicators on TOS that I have accumulated over the years. Place Bear Call Spreads just above the highest day's high, with 5 strikes between, 100 open interest at least, the more the merrier. Monitor for continuation. If I expect a shorter-term drop (or rally) I will place a closing order at 50-% of the premium. I monitor SloSto for this. See CLX as an example. I like big names with a lot of O.I. Hope that helps.
I know this is kind
Posted by matt on 19th of Jan 2023 at 10:24 am
I know this is kind of corny but you're mentioning indicators and various things you've acquired over the years. That's one benefit of being at BPT as well, we share tips and tricks, and indicator settings and other things we've learned
everyone here has their own 'traders toolbox' that is full of various indicators and things they've learned over the years and that fits their style - and hopefully put those tools or puzzle pieces together to from part of their trading plan!
yep guys, please share your
Posted by matt on 19th of Jan 2023 at 09:38 am
yep guys, please share your option strategies when possible - I like to see how you guys do those spreads and other things that I typically don't do. Options are not my expertise
For a trend move a
Posted by junkie on 19th of Jan 2023 at 09:44 am
For a trend move a call spread is used (a call is bought and sold with the same expiry). For a consolidation move or a squeeze a put spread is used to sell premium in order to buy it cheaper. FWIW.