TradingView
UDAY_C_Santhakumar
May 12, 2020 4:15 PM

$XOP - Considering Going Short Short

SPDR S&P Oil & Gas Explor & ProductArca

Description

In w/ Back Ratio Spread on this.

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.

Comment



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.

Comment

Infact two of my Pullback Strategies Setting up

Comment

Will be looking for a Roll on this position. The Valley of Loss is deepening as I am getting closer to expiration. Its better to roll with a breakeven or tiny loss, just my decision.

Comment

If you did the backspread - Exit now. You should not be losing $$1..... Mine is about to expire this week. No need to expose to the Risk Valley, even if it is one day.
Comments
dave.seremek
Could you give an example of how you would express this back ration spread for XOP using options?
UDAY_C_Santhakumar
@Dave.seremek, Sell at the money 1 Lot and Buy Out of the money 2 Lot.

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.

youtube.com/watch?v=xhmm2yQ22p4
UDAY_C_Santhakumar
@Dave.seremek, The issue with low risk BR spread is - I needed it to move this much to make $, and I am not done with it. Yet!
dave.seremek
@ucsgears, So far so good! What other low risk options strategies do you use?
UDAY_C_Santhakumar
@Dave.seremek, I have many others mostly custom each and everyone is hard to explain. But keep the easy ones here.

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.
UDAY_C_Santhakumar
@Dave.seremek, The way I build Option Strategies is based on my Technical Strategies. For Eg, UCS #1 and #3 are pullbacks. So I would go directional net 0 Volatility. UCS#2 contrarian HP setup, so I go with +Vol and + Time Decay. UCS #5 - Back Spread directional or U Spread (non directional). UCS#4 - Modified Butterfly.

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.
dave.seremek
@ucsgears, You have a really nice toolbox Gears. Do you have any setups for just volatility and if you do how do you express volatility trades?
UDAY_C_Santhakumar
@Dave.seremek, Assuming you are asking about collecting premium. I am working on a technical setup for that precisely. I have the option Strategy but if I cannot marry it with a technical setup then its of no use.
More