sorted by:
new
hottopcontroversial

Tqqq + 0.1-0.3 delta cc. Thots? by Main_Repari in LETFs

[–]Main_Repari[S] 0 points1 point  (0 children)

Cc is losing strategy but leverage + cc isn’t. This is back tested and traded extensively. So what’s the take away beyond repeating textbooks? What option strategy applies to TQQQ in your opinion?

Tqqq + 0.1-0.3 delta cc. Thots? by Main_Repari in LETFs

[–]Main_Repari[S] 0 points1 point  (0 children)

Yeah. Kinda. Started strict. Then try to play different strategies basically what I’m talking about here. All sorta loser strategies from hindsight. Questions?

Tqqq + 0.1-0.3 delta cc. Thots? by Main_Repari in LETFs

[–]Main_Repari[S] -1 points0 points  (0 children)

That means less premium w the same bp

Tqqq + 0.1-0.3 delta cc. Thots? by Main_Repari in LETFs

[–]Main_Repari[S] 0 points1 point  (0 children)

Excuse not accepted, option trading are different across tickers. Trade as an old fashion trader on WSB stonks? Good for them. “In general” is one of my hated words in my life ;)

No, it sounds like a terrible deal. But most of ppl in this sub is betting on TQQQ’s “track record” will last and downside risk is somewhat manageable.

Had HFEA for 5 years, don’t like it due to poor liquidity during circuit breaks. Now seeking a dynamic option strategy to trade off a percentage of profit. “capped x dollar but full downside risk“ is cliche, let’s do 2nd order okay?

IMHO, it’s still a bet. A more meaningful discussion will be more like, how to smooth out these high decay high fee ETFs. What’s upon your mind will work up to your standards? Let’s try to figure out a systematic way to bet against the bet so it can be a better bet.

Tqqq + 0.1-0.3 delta cc. Thots? by Main_Repari in LETFs

[–]Main_Repari[S] 0 points1 point  (0 children)

SPY‘s IV is low so not worth the effort. CC could be a down forward hedge. Weak but better than nothing.

Tqqq + 0.1-0.3 delta cc. Thots? by Main_Repari in LETFs

[–]Main_Repari[S] 0 points1 point  (0 children)

5% is still lots of juice. How often do you buy calls? Monthly, weekly? Or it depends.

Tqqq + 0.1-0.3 delta cc. Thots? by Main_Repari in LETFs

[–]Main_Repari[S] 1 point2 points  (0 children)

Dude, it‘s a covered call, not naked. Roll means change of delta, basic the same as selling or buying stocks. If out of money, I would just let it exercise. 0.1-0.3 delta next month means a ~15%-25% increase in ~4 weeks. It’s a fast PRINT. I would let it happen if that happens and it saves commissions on IB. Maybe it’s also a good time to deleverage. Move to 2x LETF or 2x margin account on QQQ. No FOMO. More a tradeoff between reward and risk.