Posted by rmoore100 on 2nd of Aug 2023 at 12:45 pm
For individual stock shorts (or longs) like this I use a "zebra"
option trade to eliminate the need to buy option premium. For
example for that GOOGL trade, at the time of the trade GOOGL was at
133. So you could sell 1 put at a 133 strike and buy 2 ITM
135 puts. The sold put premium would eliminate the premium
paid for the 2 135 strike puts. Seems like a descent
strategy to serve the purpose of eliminating paying for premium.
The negative regards having to buy an add'l option.
Anyway, just wanted to share this and if anyone has any
experience with these and would like to share their thoughts,
please do so. I certainly don't claim to be an options
expert. Thanks again Matt for working up this
Volatility System for us with individual stocks !!!!
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For individual stock shorts (or
Volatility systems - GOOGL entered short
Posted by rmoore100 on 2nd of Aug 2023 at 12:45 pm
For individual stock shorts (or longs) like this I use a "zebra" option trade to eliminate the need to buy option premium. For example for that GOOGL trade, at the time of the trade GOOGL was at 133. So you could sell 1 put at a 133 strike and buy 2 ITM 135 puts. The sold put premium would eliminate the premium paid for the 2 135 strike puts. Seems like a descent strategy to serve the purpose of eliminating paying for premium. The negative regards having to buy an add'l option.
Anyway, just wanted to share this and if anyone has any experience with these and would like to share their thoughts, please do so. I certainly don't claim to be an options expert. Thanks again Matt for working up this Volatility System for us with individual stocks !!!!