I am going to test out some weekly credit spreads using SPX. I will start using $1000 in capital. Strategy is to use the 4stdev BB as the short strike and the 5stdev BB as the long strike. Short strike should have a delta below 0.2 or adjustments will need to be made.
For example if we were to use what we have here (we won't, we wait for Monday 10:30), we would sell a 2245/2250 put vertical.
OptionsHouse
Max Profit $50
Prob. for Max Profit 84.93%
Max Loss $450
Prob. for Max Loss 11.24%
Break even price 2249.5
Prob for any Profit 85.3%
Risk: Reward 9:1
For example if we were to use what we have here (we won't, we wait for Monday 10:30), we would sell a 2245/2250 put vertical.
OptionsHouse
Max Profit $50
Prob. for Max Profit 84.93%
Max Loss $450
Prob. for Max Loss 11.24%
Break even price 2249.5
Prob for any Profit 85.3%
Risk: Reward 9:1