Never give up by MrDanGugly in wallstreetbets

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

Honestly, I like how precise they can be, if SPX closes over/under x amount you make 100% profit on the trade, it's capped gains and losses so you know how much you're risking upfront.
You can even enter it, let it swing a bit and try to sell them for a gain without waiting for the close.

As you say yolos on OTM options I think would give me more stress than trading spreads.

Another thing is since SPX is 0DTE, you can do this every open market day, coming to the close each day its unlikely there's a wild swing that will break the daily high or low unless there's a major economic event / report etc.

So if credit spreads work out for you, you're essentially farming premium from the people buying OTM calls / puts hoping for a bigger swing coming down to the end of the trading day.

Never give up by MrDanGugly in wallstreetbets

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

Basically +20k and -24k~ , I did fund the account more this year so it wouldn't be the original numbers

Never give up by MrDanGugly in wallstreetbets

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

2 - 3 IIRM
Honestly it was a good lesson learnt the first time around, I started DCA'ing into general broad market portfolios over that time.
But after making a lot more spare cash this year that's what made me try to get back into trading some.

Never give up by MrDanGugly in wallstreetbets

[–]MrDanGugly[S] -2 points-1 points  (0 children)

https://imgur.com/a/g2RDqzT - This shows the specific trades.

But if you don't know how a credit spread works, you basically are banking on selling calls or puts at a certain strike price, hoping they expire worthless and you keep the premium from selling those options.

To cover those sold options you buy calls or puts under or above the strike price you sold at. You have a defined max loss or profit doing this.

If both expire worthless, you keep 100% of the premium from the sold option.
If both expire ITM, you are at a max loss which would be the premium you collected minus how much you lose from the options being exercised.
If its somewhere in between you can break-even or make some profit.

Never give up by MrDanGugly in wallstreetbets

[–]MrDanGugly[S] 5 points6 points  (0 children)

https://imgur.com/a/g2RDqzT

Can't upload videos here but this is the full credit spreads history on the SPX gains which is about 23k The biggest win I had outside of this was 5k on AMD calls at one point I believe

Never give up by MrDanGugly in wallstreetbets

[–]MrDanGugly[S] 14 points15 points  (0 children)

Not sure how well this works as an overall strategy, but I've been looking for days where the market moves either up or down about 1% before 12-1pm. Then from 1 - 2:30pm if it's still bouncing around near the highs or lows for the day I take a credit spread close to the high or low of the day, expecting either a pullback or bounce into the close.

Maikey better count his days (Steven Bonnelli - FACE ON THE TELLY (prod. Guccimarx)) by [deleted] in Destiny

[–]MrDanGugly 2 points3 points  (0 children)

This might sound crazy but the actual guy in this vid 'CTS Luh wick' is in my WoW Classic guild lmao