/biz/ - Business & Finance

>>53039919
Either works except you are more vulnerable with a large position in longer term puts.

If Jerome comes out and says its pivoot time, or Brandon fires him to put some pivoot kike in there, then you lose a lot in your held overnight long term puts with high premiums.

The 1dte option eliminates the large risk to your initial position and merely relies on there being at least a big down day or two at some point during a worsening recession.

Not a bad idea from that perspective. In fact it is a fairly strong one from a risk-reward standpoint. Low risk, high reward. I suppose after 40 days of no dips over 2% on spy that would kill your account balance but.. lets be honest... how likely is that?

It turns out, you can tell by looking at the history and volatility numbers. Guess what, I am going to make fortune ;)