Without getting too long-winded. Details on me:
-
Experienced long-only trader.
-
Account with $100k+ capital
-
Looking to get into more advanced strategies.
-
I've been pretty successful over the last year or so with a 47% ROR on both long stock and option plays. I am looking to diversify the methods I am using.
In the process of learning, I've sort of become overwhelmed. I asked the question on here "What are some good strategies to learn as a beginner" and the answer was "All of them!" Which is great and all but…it's overwhelming. Yesterday I started somewhere on cash secured puts and ended up on a video about multi-leg strategies and diagonals. I ended feeling kind of like I had learned a little bit about a lot, but far from mastering even one strategy.
As I mentioned, I am somewhat beyond going long on put's and calls.
So where do you start? Is it worth picking a strategy for a bullish and bearish situation? I am thinking about just picking 3 to start, 2 of which are cash secured puts and covered calls. Maybe a 3rd one that's more advanced like a synthetic covered call using LEAPs?
Posted by SlayerOutdoors
3 Comments
Can anyone elaborate in what ways this position will get ducked(🦆)
So Overall view is bullish (also using this if gets bearish)
Will it work if i create range forward using 21dte and keep hedging the tail risk with 5-0dte(using atm early in expiry to otm as we move towards )OR hedging using 3/0dte with other index(high beta) which has the same correlation (~.8) to reduce the cost of hedges throughout the life cycle of this trade
The payoff is like a strip/strap but its neg.theta and neg. vega
Simultaneously i create butterfly in other account at the strike price where above trade shows max loss (here i use 5dte letting this Position open till expiration)
Payoff in one account is like V(RF) and in another one its inverted ∆(fly) and the above position is open for max 8/10 days
Paying the hedges cost using butterfly with small debit
It appear so asymmetric if goes in favour
(Its like a SYNTHETIC BET) Put call parity will never allow to be in green i guess
Or should i simply buy/sell call/fut. if bullish/bearish
One of my favorite strategies is running vertical spreads, and preferably running two credit spreads to create a condor. You can set a spread of about $10, and if you buy ATM usually you can usually buy at about $5 (You can also widen the spread to take more risk and more reward).
I love spreads mainly because they eliminate the drag of time value when wanting to go long.
An example of the strats would be if $AAPL is trading at $200, then opening a 175/180 put credit spread, and a $220/225 call credit spread (Just betting against volatility, but you can alter them in so many ways to fit most thesis’s)
Start with covered calls. Graduate to credit and debit spreads. Then graduate to ladders. I don’t do calendar spreads. I sometimes do long combos and synthetic stock positions. I never do long calls.