Steemleo Post#1: Options Investing

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Steemleo Post#1: Options Investing

Hello,

I am also excited to welcome this new project to the Steem ecosystem. I look forward to seeing what types of information people choose to share. I am an options traders, mostly spreads, formerly covered calls, now I alternate between high probability trades at the extremes of the curve, 90-95% probability during high volatility and closer to 75-80 percent probability during lower volatility times. I also like deep in the money puts spreads when I bullish and deep in the money call spreads when I am bearish on the underlying. I trade mostly index funds like SPX or SPY and occasionally smaller indexes.

These are my general guidelines when I trade ITM (in the money) put spreads.

ITM SPX Vertical spread

1. Place ITM put spread with large profit to loss ratio
2. Close when 50% of credit earned or let expire depending on SPX price action.
3. Review all seven SPX trading venues
4. High volatility
5. Liquid options
6. Need 42-56 Days to be right
7. Roll early for more time
8. Large premium, small max loss

ITM put strategy
Sell puts ITM far out, if SPX rise profit,
If SPX does rise enough, roll
Start with large credit, loss some max profit with each roll,
If market reverses keep rolling until it comes back

I use these guidelines to Roll my positions.
70%
If SPX 1000, 2000, 2800
ROLL IF IT FALLS TO 700, 1400, 1956.

This is my first time to write out this strategy, so I hope it’s understandable. I am curious about what other traders are on this platform and I look forward to learning from other traders here.

Happy Trading,
Shortsegments