What do I have to lose. If It moves to retest $40. I will make $$$, If it goes ape **** and runs away to $60 I will keep the tiny $ credit from the spread.
As long as it doesnt chop in a range. I make $, whether it is $ or $$$$ is a waiting game.
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If you havent gotten in with a Back Ratio, Here is an intraday trade setting up. Wait for the 15 min candle to form. And then, Watch for an entry based on your timeframe entry.
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Infact two of my Pullback Strategies Setting up
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Will be looking for a Roll on this position. The Valley of Loss is deepening as I am getting closer to expiration. Its better to roll with a breakeven or tiny loss, just my decision.
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If you did the backspread - Exit now. You should not be losing $$1..... Mine is about to expire this week. No need to expose to the Risk Valley, even if it is one day.
@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
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@ucsgears, So far so good! What other low risk options strategies do you use?
UDAY_C_Santhakumar
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@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
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@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
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@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
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@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.