Name anything wrong with this trade

Discussion in 'Trading' started by Make Dough Repeat, Feb 24, 2017.

  1. Stymie

    Stymie

    The simple answer is to buy three months out of the money put vertical spreads after a large vol spike. You need to give yourself at least two months for the market to calm down. In the past, when I tried to short the product, there would never be shares available to sell and margins have been elevated. Thus buying Put spreads is the most profitable with limited risk.
    You can make four times what you're risking. Even if they increase margins they can't squeeze me out of my defined risk trade. So today we simply wait for the big opportunity.
     
    #11     Feb 26, 2017