How to Buy Low and Sell High in Today Market Using Options Wheel Strategy

Discussion in 'Options' started by winstonwee, Feb 19, 2021.

  1. I'm not much of a believer in TA, so - no. Although I do look at the long-term trend of the stock as well as looking for dips that seem to have stalled out; I suppose you could call that a primitive sort of TA. I think of it more as price/volume action.

    But I also look at the premium for a given strike/expiration, and consider that against the average for that stock. If anything, it's even more important than the above. I'm not sure what you'd call it, except maybe a still-developing sense of smell for where the gold is buried. :)

    And yeah, "swing trading with options" is not a bad take on how I think about it as well.
     
    Last edited: Feb 19, 2021
    #21     Feb 19, 2021
    qlai likes this.
  2. jys78

    jys78

    Lol. You don't think market makers are aware of dividends? You don't think they are accounted for in option prices?
     
    #22     Feb 19, 2021
  3. no I do not use 30K
    if you have watch my video I have 70k+ at the moment
     
    #23     Feb 19, 2021
  4. I did know the thread get so much reply and sorry if I am not able to reply to everyone of you
     
    #24     Feb 19, 2021
  5. I'm not a HUGE option guy, but I know my way around. And I see absolutely no alpha in this system. You are just trying to time the market, and you will ultimately fail. Just sell the short straddles, roll if needed, profit, day in, day out.
     
    #25     Feb 19, 2021
  6. no i am not timing the market i am just using options to buy low and sell high. I let the trade play out by itself
     
    #26     Feb 19, 2021
  7. It can be done

     
    #27     Feb 19, 2021
  8. qlai

    qlai

    Where’s the alpha in that?
     
    #28     Feb 19, 2021

  9. Explained it in another thread - whichever way the underlying breaks you are using the other guy's that bought the legs (which guy depends on which way it breaks) to offset what would otherwise be your losses.
     
    #29     Feb 19, 2021
  10. More risky in my opinion. But everyone has different strategy and different method. If sell straddle at the wrong time at gme. It would be pretty fast to be game over
     
    #30     Feb 20, 2021