What do I have to lose. If It moves to retest $40. I will make $$$, If it goes ape **** and runs away to $60 I will keep the tiny $ credit from the spread.
As long as it doesnt chop in a range. I make $, whether it is $ or $$$$ is a waiting game.
If you havent gotten in with a Back Ratio, Here is an intraday trade setting up. Wait for the 15 min candle to form. And then, Watch for an entry based on your timeframe entry.
Experiment a bit. This work if the stock/ETF moves beyond 1 SD.
Ofcourse, you would have reduction in buying power and max risk would be (Sold Credit Spread).
Just a typical Back Ratio Spread, nothing special.
I have a strategy for a "U" Spread where you would risk $200 for $1 Wide Strike Lot with $500 profit - Any direction play... Love it when squeezes happen in the market.
Ofcourse other parameters have to align.
In trading no definitive answer, but mostly it all boils down to what I feel in the first 5 min of looking at chart, Option Chain.
Yes, I have been wrong losing max 10-20% of allocation, but when I win I win with 40-60%. Sustainable so far.