Posted by DigiNomad on 17th of May 2023 at 04:55 pm
Watch some TastyTrade content on YouTube or their website. They
have study after study showing which DTE, delta, etc are best.
They approach it very objectively. For example, based
on many studies conducted, they make the case that you should NOT
hold until expiration. In fact, they say the sweet spot is to take
profits at 50% and manage at 21 DTE. I don't always follow
their recommendations on this point (greed), but I never hold until
expiration....maybe 1% of the time over the last 15 years or so.
For what it's worth, don't make the mistake of getting sucked
into that world and forgetting about BPT - I think this group and
the newsletters are critical to my success as a credit spread
trader!
I know of the argument against holding to expiration for 0DTE.
The last week may add almost nothing to the credit owing but will
hog up the margin. It is a very good argument against doing
that.
Junkie, DigiNomad. You guys are sharing some very good option
trades but I must warn the newby's that unless they have been
trading options for some time and have good experience doing so
that these are high risk option trades. However I have posted the
trade on my TOS paper trading account and will follow the trade as
you guys post. Good Luck Junkie.
mundy, selling premium is inherently risky. The bottom line is
either 50% of the credit received (about $160 per spread) in 2
months is either worth the trouble of holding a position or
not.
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DigiNomad, I bought $SPX Jul 21 4400/4425 Bear CS on ...
Posted by DigiNomad on 17th of May 2023 at 04:55 pm
Watch some TastyTrade content on YouTube or their website. They have study after study showing which DTE, delta, etc are best. They approach it very objectively. For example, based on many studies conducted, they make the case that you should NOT hold until expiration. In fact, they say the sweet spot is to take profits at 50% and manage at 21 DTE. I don't always follow their recommendations on this point (greed), but I never hold until expiration....maybe 1% of the time over the last 15 years or so.
For what it's worth, don't make the mistake of getting sucked into that world and forgetting about BPT - I think this group and the newsletters are critical to my success as a credit spread trader!
I know of the argument
Posted by junkie on 17th of May 2023 at 05:00 pm
I know of the argument against holding to expiration for 0DTE. The last week may add almost nothing to the credit owing but will hog up the margin. It is a very good argument against doing that.
Junkie, DigiNomad. You guys are
Posted by mundy on 17th of May 2023 at 09:16 pm
Junkie, DigiNomad. You guys are sharing some very good option trades but I must warn the newby's that unless they have been trading options for some time and have good experience doing so that these are high risk option trades. However I have posted the trade on my TOS paper trading account and will follow the trade as you guys post. Good Luck Junkie.
mundy, selling premium is inherently
Posted by junkie on 18th of May 2023 at 01:21 am
mundy, selling premium is inherently risky. The bottom line is either 50% of the credit received (about $160 per spread) in 2 months is either worth the trouble of holding a position or not.