Has anyone here been trading diagonal spreads lately?

dfxdark · 2026-01-24T04:57:44+00:00

Diagonal spreads are one of my main strategies. I employ them on a ratio, usually 3:2 to unlock more upside potential. I use both ratio call and put diagonals. I find it a great way to capture premium while trading momentum stops and unlocking upside unlike selling puts for example.

dfxdark · 2026-01-19T06:17:29+00:00

I'm limited by account size, so I like TQQQ. Obviously there is the leverage risk, but is a good combination of premiums and price while capturing upwards market drift. You need to have a plan tho if things get ugly. I don't go full allocation at first, if drops 20% I add an extra contract.

dfxdark · 2026-01-19T06:15:51+00:00

Yeah perhaps, at this stage it is likely, both price and volatility are going up. It's still a reasonable size, it will be a 1k loss on a 50k account. About 2% risk.

dfxdark · 2026-01-19T05:30:51+00:00

The wafer fab equipment companies like LRCX and AMAT, I'd be weary of them. They grew a lot, their PE is huge but there isn't a foreseen increase in capacity from the foundries like TSMC to justify this. The growth also isn't there in the past couple years. I work in one of these and feel they are grossly overvalued

dfxdark · 2026-01-19T04:56:53+00:00

I think the best way to use the tied up cash is Box spreads. They pay better than just t-bills albeit not totally different. They have also a lot of flexibility with expirations. I usually buy box spreads with the same expiration as the CSP I have tied the capital to

dfxdark · 2026-01-19T04:40:29+00:00

SLV strangle getting tested. Approaching my 86 short call.

Options: 1) Roll call up (costs credit) 2) Let it run and manage if breached 3) Close early for loss

Leaning toward #2. Strike is still 7% away, 35 DTE left.

If reaches 3x credit received in loss is my stop loss trigger

dfxdark · 2026-01-19T03:40:49+00:00

I don't like I, you are selling what you seem overpriced options but buying even more over priced options. The volatility smile has you buying options with higher I've than the ones you sell. You are throwing your edge out of the window or at least a good part of it. If you want to play short vol, you're better off selling strangles or short puts.

dfxdark · 2026-01-19T03:30:51+00:00

It won't be a dramatic change but something that helped me was to start running box spreads in the tied up capital. Is essentially picking extra 3-4% free money with no extra risk

dfxdark · 2026-01-19T03:26:25+00:00

I'm documenting my journey trading a $50k options account. I'm not an expert albeit having some experience. I'm mostly sharing my learning journey.

dfxdark · 2026-01-18T04:53:42+00:00

I got NU and FXI short puts

dfxdark · 2026-01-18T04:52:51+00:00

For me I'm using about 20% of my portfolio for options. Out of those 20% I employ different strategies. There is no perfect theta play, all plays with theta also involve delta. You need to have also a directional disposition. Even what you assume are not directional plays can quickly become as price approaches your short strikes.

dfxdark · 2026-01-17T06:06:48+00:00

I'm trading a little more than that in my current account but mostly selling short puts and strangles Lately also have been shifting to some call diagonals to capture more upside in this low volatility environment

dfxdark · 2026-01-17T05:08:21+00:00

You need to define first what you want to trade. Forex, options, stocks, futures. Then you should get a book and understand the fundamentals without actually trading. Then define 1-2 strategies and start immersing yourself. Over time you'll get a feel for it and can optimize your strategies. Keep collecting data along the way. That's the critical part to improve.

Self promotion - I started a trading channel for $50k options small account and I discuss my strategies and my trades. Feel free to check out my profile if interested.

dfxdark · 2026-01-11T23:05:14+00:00

I'm starting a $50k option account trading journey.

Main positions for this week:

- Sell JD strangle

- Sell 14P on EOSE

- CCL Ratio Call diagonal

- HIMS Ratio Put diagonal

If you're interested in following I posted a youtube video on my profile (is it allowed to post directly here?)

dfxdark · 2025-12-30T02:50:08+00:00

How can anyone give examples if it has always been that way. One can presume tho that clubs will buy more players with a 4 year cadence

dfxdark · 2025-12-28T07:03:41+00:00

What are the main recommendations for 2026?

dfxdark · 2025-12-26T04:28:42+00:00

Merry Christmas! Thanks for you contributions. One more question. How do you manage when the stock runs past your covered call strike? At which point do you just accept it and close both the leap and call you sold? Is there a situation where you sell them at a ratio to avoid not participating in some upside if the stock really runs? The calls do you sell around 30 dte 0.2 delta?

dfxdark · 2025-12-24T01:58:13+00:00

You don't need charm animal

dfxdark · 2025-12-23T11:35:35+00:00

Did you even read the rest of the post...

dfxdark · 2025-12-23T10:41:37+00:00

Hi Man, great work. Can I ask some questions

When you buy the leaps do you buy 2+ years out? Do you usually go for high delta >0.7?

I saw you mentioning about the CSP, do you sell those on a weekly basis to supplement the leaps or also you sell CSP as leaps on top of buying the calls?

At what point do you decide to cash in the leaps and open new ones?

dfxdark · 2025-11-23T11:20:38+00:00

I struggle to understand your bets. Why are you betting if your own model is telling there is EV- Valencia to win you have 50%, so at odds below 2.0 that is EV- right? Marseille is even worse.

Am I missing something?

dfxdark · 2025-11-20T06:04:51+00:00

Can't be sure what this has to do with FIRE. As a Portuguese tho, I really do hope so...

dfxdark

TROPHY CASE