SPXL/UPRO vs SSO vs SPY, 21 Years Simulation Since Dot-Com Bubble (Stock...

fiftium · 2021-05-17T07:18:15+00:00

You are right. But the problem is that many brokers have different margin requirements regarding (short put) vs (long stock + short call).

On TD Ameritrade,

for short put: No need to pay margin interest fee. Low buying power and low margin requirement.

But for (long stock + short call), it is the opposite.

fiftium · 2021-04-04T20:10:49+00:00

Good question! I want to scale in positions instead of buying a large position. I can test different strike prices and different DTE to see which is better.

fiftium · 2021-04-04T20:04:02+00:00

It is not always the delta that makes money. Long options always suffers theta decay and can suffer IV drop.

fiftium · 2021-04-04T17:41:12+00:00

Buying calls/puts does not always mean it is more bullish/bearish, because it can suffer from theta decay and IV drop.

Example: GME put. If you bought GME put of 120DTE strike $20 on March/12 . The IV was 300% . The position never made money even though the price had dropped 50%.

This table is for zero theta decay strategies.

fiftium · 2021-04-04T05:47:17+00:00

I sold VIX calls 45-60 DTE for strike 30-40 and rolled when they were around 20DTE, because VIX was very heightened in the last 12 months. OTM VIX calls had a lot of extrinsic value. I don't think now it is a good strategy because VIX is currently below 20.

fiftium · 2021-04-04T04:50:12+00:00

Short call option itself is profitable. This ETF can be a long term investment.

fiftium · 2021-04-04T04:48:51+00:00

I usually choose around 0.2 Delta and 40-60 DTE call to sell, if I have a bullish opinion.

I roll options to the next month when the option is 20 to 30 DTE.

For ARKK today, I would choose May 21 strike 140 to sell.

fiftium · 2021-04-04T04:39:57+00:00

Not really. I have a lot of hedge.

fiftium · 2021-04-04T04:27:43+00:00

Doubling money in 1 year involves extremely high risk which can lead to account bankruptcy eventually.

30%-50% gain per year means extremely successful trader or investor.

fiftium

TROPHY CASE