Remember that you lose it all if the market flies past...

📉 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.

5y, 30w 5 replies

📉 Bill Very interesting, that sounds like a good strat

5y, 30w 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.

5y, 30w 3 replies

📉 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

5y, 30w 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.

5y, 30w 1 reply

📉 Bill It's very stressful and I've lost a bit this summer so far but got to learn when to cut your losses and when to hold. The market so far is dominated by passive investing so when it goes up it goes up a long time, slowly. When it starts to top, look out below as it gets hammered for weeks as people panic and sell the entire index at once. No liquidity in the market anymore

5y, 30w reply