SPY 3x Weekly Selling Credit Spreads Strat
Now that President Joe Biden has been Inaugurated, a lot of volatility should die down. Historically, the market loves a good bull run after elections because now there is stability.
SPY is the most liquid, the most traded ETF on the market, and the only stock that has triple weekly options that I know of. Potentially, you will be able to return 20-30% every other day if you do this strategy perfectly. However, one wrong spread will wipe out a week's worth of gains. I've seen it done before, it's not sustainable, but it sure does sound fun as fuck. The key here is to not over leverage each credit spread, and to secure profits. Rolling is a potential option, but not optimal.
I will be utilizing the Bollinger Bands, TTM Squeeze, MACD, RSI, and maybe the 9 day EMA or vwap to aggressively sell call credit spreads at the top, or put credit spreads at the bottom. I've drawn in what seems to be a decent channel for support and resistance.
May God have mercy on my soul.
SPY is the most liquid, the most traded ETF on the market, and the only stock that has triple weekly options that I know of. Potentially, you will be able to return 20-30% every other day if you do this strategy perfectly. However, one wrong spread will wipe out a week's worth of gains. I've seen it done before, it's not sustainable, but it sure does sound fun as fuck. The key here is to not over leverage each credit spread, and to secure profits. Rolling is a potential option, but not optimal.
I will be utilizing the Bollinger Bands, TTM Squeeze, MACD, RSI, and maybe the 9 day EMA or vwap to aggressively sell call credit spreads at the top, or put credit spreads at the bottom. I've drawn in what seems to be a decent channel for support and resistance.
May God have mercy on my soul.
Comment:
DM me if you want any updates or to see my trade logs and how they are going. I'm not able to link any media.
Comment:
a note: buying naked calls and puts will yield a higher % return, but since these options are less than weeklies, the greeks are beating down on your ass. Letting spreads expire ITM or OOTM provide a decent asymmetric risk profile to achieve max profit. Selling and buying the proper directional spread is up to debate, but we'll see where it goes.
Last year I had a 57% success rate playing SPY like this but ended up breaking even. I tried selling wide iron condors, but the wing that receives the lower premium doesn't make up for the wing that gets blown out. Alternatives are selling ITM put spreads or buying far OOTM debit spreads further than 2 weeks or so, granted that SPY doesn't break trend. I literally might be entering at the worst time possible, SPY can change trend anytime, or even enter into a more bullish trend. Who knows.
Last year I had a 57% success rate playing SPY like this but ended up breaking even. I tried selling wide iron condors, but the wing that receives the lower premium doesn't make up for the wing that gets blown out. Alternatives are selling ITM put spreads or buying far OOTM debit spreads further than 2 weeks or so, granted that SPY doesn't break trend. I literally might be entering at the worst time possible, SPY can change trend anytime, or even enter into a more bullish trend. Who knows.
Comment:
Bought a 383/384 call debit spread and sold it for breakeven since SPY got rejected around $384.86 or so, then sold a 386/385 call credit spread.
The call debit spread bought for $58 and could've sold for around $69 yesterday but I didn't want to do a daytrade.
The call debit spread bought for $58 and could've sold for around $69 yesterday but I didn't want to do a daytrade.
