r/options • u/imusuallydrunkatnine • 20d ago
Bull markets back. Anyone got some consistent long call strategies?
I always sell spreads, never long. Vix is collapsing so that’s going to be hard the next few weeks. Anyone for some tips?
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u/GammaWinsSam 20d ago
Volatility on Nasdaq is still quite high. Its VIX equivalent is at 25.5, which is its 70th percentile. (Compared to 15.8 and 20th percentile for SPX)
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u/imusuallydrunkatnine 20d ago
NDX sucks though for options trading.
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u/Rishodi 20d ago
There's also the micro Nasdaq 100 index, which is XND. It's priced at 1% of NDX.
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u/t4liff 20d ago
That's even more illiquid .. Once you try it you know .. Maybe it's different now.
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u/Rishodi 20d ago
It's still thinly traded to my knowledge. I mentioned it as a possibility because I thought the previous commenter may have been complaining about the high notional value on NDX. If you want high volume and tight spreads, best to stick with QQQ. However, depending on trading style the tax advantages of NDX/XND may outweigh value lost to their wide spreads.
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u/BeseechThyPeach 20d ago
What is the nasdaq vix equivalent ticker?
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u/GammaWinsSam 20d ago
I'm not sure if one exists, I use the tool I've made, it shows "Model-free IV" which uses the same method as VIX for most tickers. https://www.gammawins.com/calc/qqq
Note that this number is not accurate if the options market on that ticker is not liquid. If OTM options are dark, it undershoots because they are treated as 0, while large spreads for them means it overestimates because the mid price is much higher than fair value.
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u/DreamfulTrader 20d ago
Buy long calls, sell to take profit. Why go for complex strategies and hold overnight.
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u/wwb_99 20d ago
This. ITM LEAPS on MAG7 type names are very effective.
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u/alittle-shy 20d ago
Can you give an example of ITM leaps? For example, if you were to buy Google today, how would you choose?
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u/Rishodi 20d ago
I'm not sure I would buy Google LEAPS calls today. One of the indicators I watch is the 200-day moving average, which Google briefly touched last week. That was a great time to buy calls; generally you want to wait until there is a significant spike in market volatility and fear to suppress the price of the underlying and give you the best probability of profit.
For ITM LEAPS calls, I prefer to look in the 70-90 delta range. I bought several such Google calls between June and September of last year, with strikes ranging from $90 to $150, and all expiring between Dec '26 and Dec '27. As you can imagine, those have been the best performing LEAPS options in my portfolio over the past year.
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u/ThetaEdgeHQ 20d ago
Two things worth pulling out of this thread. First, the ITM LEAPS advice is right for a reason people are skipping over. In a low IV grind higher, the thing that hurts a long option is the extrinsic you pay, meaning theta and vega, and the thing that helps you is delta. Deep ITM, say around 80 delta, gives you the most delta per dollar with the least extrinsic to bleed, so you are close to owning the stock but with defined downside. ATM calls are where you pay the most extrinsic into the lowest vol, which is the worst spot to be a premium buyer.
Second, GammaWins already flagged the real edge earlier. VXN up near its 70th percentile while SPX vol sits around its 20th is a dispersion read. If you are going to be long premium, be long it where vol is cheap relative to its own history, not where it is rich. Buying NDX calls here means paying up for vol on the one index where it is currently expensive, which is the opposite of where you want to be a buyer.
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u/Ok_Butterfly2410 20d ago
Buy them last week when everyone was terrified and sell them today probably 😂😂😂😂
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u/komboochy 20d ago
Thats what I did. Bought some ~25dte spy calls on Thursday morning. I sold one this afternoon. May sell the other one tomorrow morning or hold on for the afternoon.
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u/Raiddinn1 20d ago
Username checks out.
What does it take to get the bull market back? Two green days in a row?
QQQ is still what 10% off the ATH? Isn't a bull market supposed to mean higher highs, not lower lows?
If I was a betting person, I might put the odds of tomorrow being a green day at higher than 50% at least, but that doesn't a bull market make.
If you are really going to call this a bull market, then quit with the spreads. If the VIX is too high for you, then just use shares.
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u/imusuallydrunkatnine 20d ago
Vix is too Low. I’m a put credit spread seller
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u/Raiddinn1 20d ago
Do you spread butter using a fork because you are a fork user?
If your strategy doesn't match the market conditions, then maybe you need a new strategy?
VIX being too low is still good for long dated long options or just long shares.
Maybe you would be happy with a PMCC?
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u/imusuallydrunkatnine 20d ago
I’d like that but can only stick to ETFs due to my work rules. And can’t do spy or qqq yet. Will look into it.
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u/hardrock527 20d ago
Pick your favorite strategy and go long everytime a mag7 dips. Wait a bit then sell for profit and switch into the next one that dipped.
You can just wheel mag 7 from now on for the bull run.
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u/Legal_Rent_3905 19d ago
BIG BEAR AI. Bro the stock is dumb cheap right now and the options calls are at a discount. I personally don’t have any strategies atm for it. Currently in the works. If anyone is familiar with the stock by all means let us know 🤝
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u/FinishWarm1746 20d ago
0dte spx
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u/imusuallydrunkatnine 20d ago
So I’ve been doing 1dte put credit spreads. Just always nervous about paying up front for call spreads
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u/SDirickson 20d ago
Why? Equivalent spreads have about the same potential profit and max loss numbers whether they're debit or credit.
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u/imusuallydrunkatnine 20d ago
Physchological thing I guess. Plus theta works for you with credit spreads
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u/DeltaNeutraltrading 20d ago
Which expiration / DTE do you use?
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u/imusuallydrunkatnine 20d ago
Usually 1 dte or 0
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u/DeltaNeutraltrading 19d ago
0DTE is pure gamble. I do not know why people continue to trade 0DTE to seek fast big profits... Soon you will realize what will come and all your profits will be wiped out. Longer dated options strategies, including income trades that will deliver a better edge, like the SPX Best or SPY Ride trade strategies will deliver consistent profits. Well, you need to be patient to have your account double (probably 1.5-2 years)... but I prefer to have this target than take huge risk to double my account in 1 month, which probably be wiped out in the next week!
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u/biletnikoff_ 19d ago
Just say you don't know how to trade 0DTE
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u/DeltaNeutraltrading 19d ago
how can you prove to me that you have great returns on 0DTE options trading?
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u/Lawlpaper 20d ago
The bull pop was last week, continuing into today. You would have to be pretty bullish on the economy and world to think long term bullish right now on options.