Investing in stock market indices via option spreads beats buffet?

Discussion in 'Options' started by Trading Education Buyer, Sep 17, 2016.

  1. ironchef

    ironchef

    Questions for you:

    1. How do you determine support?

    2. Since you sell ATM are you buying OTM or ITM?

    3. If your support assumption is wrong?
     
    #61     Nov 23, 2016
  2. Supports can be seen on 4 hour , daily .weely and monthly charts.

    I sell atm and buy future and much lower put , sometimes I buy call ATM + 100 and wait

    If my anylysis is wrong , I will buy a naked call lower , after expiry and monthly calls.

    After 2 losses on calls , I wil buy double orignal size.

    technical analysis dax signal

    By the way IGNORE the other clueless idiots , they are just vendor's goons
     
    #62     Nov 23, 2016
  3. ironchef

    ironchef

    Not so, they knew a lot more than you gave them credit. I understood where they were coming from.
     
    #63     Nov 23, 2016
  4. ironchef

    ironchef

    Is that what others here called Martingale?
     
    #64     Nov 23, 2016

  5. not really

    stock indices are well supported by fed , stockmarket failing fund manager and all other funds
     
    Last edited: Nov 23, 2016
    #65     Nov 23, 2016
  6. drcha

    drcha

    #66     Nov 23, 2016
  7. ironchef

    ironchef

    But you doubled down when it went against you, I thought by definition that was a Martingale strategy?
     
    #67     Nov 23, 2016
  8. ironchef

    ironchef

    I often looked at BRK financials. I noticed they had $100B in debt and $100B in "other liabilities" which I assumed was their insurance floats (free money to them). So with equity of $270 B, for every 1$ of equity they could buy $1.74 in investments. I need to figure a way to leverage at 1.75 without the risk of margins call and paying high interest rate on my borrowing.
     
    #68     Nov 23, 2016
  9. Trading the edge , usually after 2 or 3 losses you will most likely get your losses back , on index futures , on monthly contracts with at least 30 days to expiry.

    My strategy is 1,1 ,2 , 2 (6 %) ,4 ,4 and I start with 0.5% , 0.5 % ,1% ,1% ,2 % ,2%

    or you can do 0.25% , 0.25 % , 0.5 % . 0.5% ,1 % , 1% = 3.5%

    Most traders start at 2 % or 5 % or 10 %
     
    Last edited: Nov 23, 2016
    #69     Nov 23, 2016

  10. I only trade indexes , stocks can be risky
     
    #70     Nov 23, 2016