What Option Strategy Do You Use?

Discussion in 'Options' started by ironchef, Mar 2, 2024.

How Do You Trade Options

Poll closed Mar 16, 2024.
  1. Mainly an option writer

    41.7%
  2. Mainly an option buyer

    25.0%
  3. Mainly non directional combination or spreads

    45.8%
Multiple votes are allowed.
  1. bln

    bln

    I'll take syntetic delivery by putting in a MOC order in advance for equal dollar amount in ES, SPY, VOO, whatever
     
    #71     Mar 4, 2024
    cesfx likes this.
  2. I trade the 1-1-2 trade in /ES. Buy a 50 point wide put debit spread at 129 DTE for about $10. Then sell two five delta naked puts in the same expiration.

    Close the naked puts at 95% profit or at 30 DTE. Put on a new trade each week. After 15 weeks I close one trade and put on another trade.

    Most times the put debit spread is a full loss at expiration. Occasionally, you get profits when price moves inside the tent structure. This has been a wonderfully consistent trade for me.
     
    #72     Mar 4, 2024
    Quanto, Zwaen and ironchef like this.
  3. ironchef

    ironchef

    Welcome back. Have not seen you around lately.

    Sounds like you are doing well. :thumbsup:

    Questio: What is the purpose of the debit spread?
     
    #73     Mar 4, 2024
    Quanto and Windlesham1 like this.
  4. Options sellers destroy real value. It's no surprise the VIX has been tanking along the bottom.
     
    #74     Mar 9, 2024
  5. newwurldmn

    newwurldmn

    don’t you sell options/vol via spreads?
     
    #75     Mar 9, 2024
  6. I'm not an out and out seller I construct strategies with various expiries, so while I maybe nett short I'm still enjoying the regular profits from owning some options. I just have no time for naked put sellers and the Robin Hood crowd
     
    #76     Mar 10, 2024
  7. newwurldmn

    newwurldmn

    I trade naked short vol all the time and while I get whacked once in a while it’s worked pretty well.

    I also do structured trades too and am occasionally long gamma/vega.
     
    #77     Mar 10, 2024
    nbbo, zghorner and ironchef like this.
  8. ironchef

    ironchef

    1. Why don't you do butterfly instead of naked short?

    2. Long gamma/vega, :thumbsup: but the devil is in the details.
     
    #78     Mar 10, 2024
    zghorner likes this.
  9. Quanto

    Quanto

    Yes, I too would like to use Butterfly, but it requires MarginAcct while I prefer CashAcct... :)
    I think the situation with many IRAs is just like with CashAcct.
     
    #79     Mar 10, 2024
  10. taowave

    taowave

    Are you referring to Flys??

    Flys are not necessarily Long gamma/Vega,esp ATM

    They can be structured as such

    Think about it


     
    #80     Mar 10, 2024
    ironchef and newwurldmn like this.