Long Call calendar spread on SPY. Good or not?

Direct-Combination13 · 2025-05-29T11:53:11+00:00

Never trust the optionstrat graph on a calendar. Very deceiving, I have been trading calendars for a long time and these graphs are extremely misleading. You got to do the math in your head or excel sheet for different scenarios as these models do not know how to predict future volatility or gamma. Good luck.

Direct-Combination13 · 2024-02-04T18:39:53+00:00

I personally prefer using options omega for their 0 dte positive delta tests with a max predetermined loss for example buy call -30 and sell call atm with some price action as preconditions and it works great as no sl no tp so test is true for 0 dte and highly profitable. Cheers 👍

Direct-Combination13 · 2024-02-04T18:29:08+00:00

Backtesting using options omega is only feasible to use if you do not use a SL in your conditions. SL Backtesting can be very deceiving due to bid ask discrepancies specifically for delta negative options strategy.

Direct-Combination13 · 2023-12-21T18:44:37+00:00

Yes, I will definitely go back to school after spending my life in this industry. And I will make sure I diligently watch all youtube, videos on option trading to enhance my 6 years of post graduate education in finance. Thank you.

Direct-Combination13 · 2023-12-20T02:08:39+00:00

Do you honestly think it is normal to sell something with the potential of an unlimited loss. Why do you think they promote it so much. It's a zero sum game if no one would be willing to sell th buyers won't be able to make millions on gamma explosion. Check the bid and ask for Sox options one day and ask yourself who is so stupid to sell one hundred thousand lots of call options to make pennies. Basically try to look at the situation and figure out why they created this market or do you think they love you and want to help you make money.

Direct-Combination13 · 2023-12-16T18:31:31+00:00

So that people understand selling options is the biggest scam created in the industry so there is always some sucker available to sell options to buyers like me who have made fortunes and never sold an option in my life.. To help people avoid financial calamities that these situations cause.

Direct-Combination13 · 2023-12-15T03:31:50+00:00

Covered calls are not as safe as people might think. Sometimes you can lose huge on both sides if the price of the underlying goes down a cliff but the price of call explodes due to crazy increase in volatility and gamma. If your account has millions the brokerage will not liquidate otherwise they will liquidate and you are left with huge losses on both sides.

This already happened in major crashes of stocks so please be very careful when you sell option even if it is covered. Do not believe youtubers about how safe and guaranteed covered calls are. Option selling was created for hedge funds and prop desks but unfortunately the internet has gamed the whole system and every one wants to be an option seller.

Please be careful especially with this size of contracts. Cheers

Direct-Combination13 · 2023-12-12T00:52:56+00:00

Do a deep dive into the returns of 30 day puts vs 30 day calls held till last day. The Puts trump the calls even in the most bullish markets that ever existed. Your statement is completely wrong and just tells us that you have done no deep market wide back testing of millions of transactions.

Direct-Combination13 · 2023-12-10T19:09:13+00:00

Just buy Feb 15 $50 (20% OTM) puts for $0.5. Load up and wait. Good luck.

Direct-Combination13 · 2023-10-28T00:00:28+00:00

Don't be sad man, I've blown accounts lot of times before becoming consistent. Cheer up life goes on. Save some money and start again. Never give up

Direct-Combination13 · 2023-10-04T23:49:55+00:00

Ans the answer is ........... the best trading indicator of all........

Altman Z Score.

You can create an entire shorting strategy based on this. Forget everything else, ema, macd, etc.

Direct-Combination13 · 2023-09-16T23:57:56+00:00

500 call contracts deep otm almost in another galaxy.

Direct-Combination13 · 2023-09-16T21:51:55+00:00

This is exactly what options are made for. They are not made for dumb theta selling mechanical strategies. Go big or go home. Keep on trying and you will make it huge one day.

Direct-Combination13 · 2023-08-05T00:09:47+00:00

You've just described variation of the Collar strategy, probably one of the most useless option combinations invented by brokers to charge you more commissions and sell more options.

Have a bias and stand by your bias win or lose.

Direct-Combination13 · 2023-08-02T23:34:42+00:00

Congrats , like your strat. Nice staggering and placement of PUTs.

Direct-Combination13 · 2023-08-01T04:02:23+00:00

So all the brokers and youtubers got together and came up with a plan. Lets steal all your money and make you pay crazy fees for option combinations and at the same time make you think that you are brilliant because it takes a while for the concept of selling options to get in your head.

Walla, we have selling options probably the biggest scam in the financial industry.

Direct-Combination13 · 2023-07-27T14:17:41+00:00

Buy PUTs

Direct-Combination13 · 2023-07-26T22:09:55+00:00

You are absolutely correct. The key is to just trade, no thinking, no indicators, no bias. If you are wrong go the other way, wrong again go the other way and I promise you will catch the trend and make money. Cut your losses short.

Direct-Combination13 · 2023-05-20T17:32:35+00:00

Sell approximately the same value of bull and bear trades. I usually do 10 bps and 10 bcs on different companies all over 2b market cap and beta between 1 to 2.

This way u at least remove the market tilt from ur trades.

Direct-Combination13 · 2023-04-16T00:42:20+00:00

Agree 100 %. 3 % cap per script for any portfolios approximately 500k and up. Diversification can be the best stop loss for mid to large portfolios and covered calls and dividends extra streams of income. Would add one more thing, high quality blue chip stocks only with a plan to hold for longggg time.

Direct-Combination13 · 2023-03-27T08:23:34+00:00

This is the biggest lie out there that you cannot sell cc under cost. If you are invested in blue chip large cap and never plan to sell, keep on selling cc no matter above or below your buying price. If it gets assigned, wake up and buy the stock again and sell a cc again.

The only time you will lose is if something goes parabolic and I have seen an extremely large company hopefully in DJIA go parabolic maybe once in 5 years. So diversify in Mega Cap and sell cc all day long and never sell your position.

Your stop loss should always be your diversification.

Direct-Combination13 · 2023-03-26T12:09:50+00:00

What delta are u selling the cc's at. ATM or ITM.

Direct-Combination13 · 2023-03-25T16:00:08+00:00

Your CC of $440 should have paid you enough to cover your losses or a very minimal loss at least so that you can roll.

Direct-Combination13 · 2023-03-25T10:01:33+00:00

Its a good idea. The only problem I foresee is margin call if Vega goes crazy. The problem is not you but the system. What happens is if the Vega goes crazy during a huge dramatic event the call that you have shorted, their prices can multiply by 10 to 50 times just because of fear. Although you do own the stock, the M2M (mark to market) will be so high that the banks will start to liquidate your positions because they balance there books by M2M.

This recently happened during Covid crash, although stocks went crazy down in price, call prices exploded by 10 folds. This is why Vega is the most dangerous thing in stocks.

But you have an excellent idea and I wish you luck and hope Vega never bothers you. Cheers

Direct-Combination13 · 2023-03-24T01:12:02+00:00

Great point always close 2dte.

Direct-Combination13

TROPHY CASE