/biz/ - Business & Finance

>>21329208
People have different methods obviously. Liquidity, sector rotations, actual worldwide news, general sentiment of the market, RSI, TA.. you just have to find what works for you. Start small (like, 1 spread at a time, 1 sector at a time) then go from there. It's a good idea to start doing like SPY weeklies for dumb low returns (literally 1-2% on collateral).

Example:
Bid-ask spread for 8/14 SPY $310 and $311 result in paying $0.03 a share for 8/14 SPY $310 put and $0.02 a share for 8/14 SPY $309 put.

You sell the $310 put and buy the $309 put. You need $100 of collateral in case SPY dumps to $309. But if SPY stays above $310 by 8/14, you make $1 per $100 of capital required for creating this put spread. This is a 1% return on your collateral. If you gave people a chance to make 1% every single week, they would call you a genius trader. This is normally not possible in a flat market, but due to coronavirus, this is a pretty safe way to make weekly targeted 1-15% returns depending on how risk averse you are.

>>21329283
The only positions I hold over the weekend on Monday SPY spreads with all of my leftover uninvested cash collateral, usually only for 2-3% return since any more than that I can't account for. For example, Russia announcing a vaccine. If they do that on Friday night, my positions would be scary to hold.

>>21329226
I write like 10-40 of them. So $1500 means I've put up $10k in collateral. Sounds risky, and it is - if something bad happens. But I have enough smaller, near 99% guaranteed wins to make up the capital for this. And every win I make, the bigger my cash pool grows. I'm usually setting aside $50k for spreads and have the rest of my money on wheeling TQQQ and AMZN.

Any thetagang members here
Win 95% of the time
Cut losses short 5% of the time