📉 Bill Stock market thread 7/13, go:
🗜️ Mx My weekly strategy is SPY butterflies in either direction, hedged with an equal VXX butterfly. If I'm right about the market direction, SPY makes money. If am wrong, VXX makes money. The key is to position your P/L ratio as high as possible, so you make more from the winning fly.
3y, 40w 5 replies
📉 Bill Very interesting, that sounds like a good strat
3y, 40w 4 replies
🗜️ Mx Remember that you lose it all if the market flies past your fly (no pun). So, you have to create a fly that covers at least the IV range of the expiration term. TOS will help you with that, generally.
3y, 40w 3 replies
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📉 Bill I guess I'm a simple man and prefer to swing trade and hold long puts several months out in overbought large caps. Currently holding nov $msft
3y, 40w 2 replies
🗜️ Mx That's not a bad strategy at all. Your LEAP put will make money from the increased volatility as well as delta, if the underlying goes down. Also your time decay is very small and it costs you very little to hold the position.
3y, 40w 1 reply