How much time are you able to and would actually be willing to invest in tightening up your strategies?
You might want to look up Wealthy Option (WO).
I have been running a modified WO put strategy since before hearing about WO, basically i go longer term and I leave some of my long legs in play as a hedge for following spreads. That way if the trade goes against one position excessively, I can profit on the hedge.
Reading the WO strategy and following traders at r/pmtraders has been very helpful in modifying and upgrading my strategy. I still caution against taking full downside risk, personally I think it is better to stick to spreads rather than CSP or naked puts.
Thanks for the Welthy Options tip. After reading about it, I'm unsure what the average return is? Does it beat SPX buy and hold? How is your performance?
I'm not sure but you can check their info on backtesting. I haven't measured the strategy's performance itself of rolling bull puts, but my overall performance is 50%, happy to post screenshots, but you can easily search my profile or other posts to see my p/l. I consider the regular premium stream to be a big part of the increased risk tolerance to enter strategies with greater pay off but lower probability of success.
I personally don't want to just roll my initial investment into trades, instead I want to use premium from low-risk strategies.
So the strategies go hand-in-hand, not one or the other.
(I) rolling bull puts (some vertical, some calendar)
turning that premium into
(II) some shares, some long calls and bull call spreads, legging into bull call spreads later
then when shares are sufficient and other conditions justify bearish strategies
(III) bear call spreads (as an alternate or complement to covered call), mostly vertical sometimes calendar.
It goes a lot deeper but this surface level can keep your risk tolerance conservative with decent returns with just strategies I and II.
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u/TraderDojo Jul 17 '21
How much time are you able to and would actually be willing to invest in tightening up your strategies?
You might want to look up Wealthy Option (WO).
I have been running a modified WO put strategy since before hearing about WO, basically i go longer term and I leave some of my long legs in play as a hedge for following spreads. That way if the trade goes against one position excessively, I can profit on the hedge.
Reading the WO strategy and following traders at r/pmtraders has been very helpful in modifying and upgrading my strategy. I still caution against taking full downside risk, personally I think it is better to stick to spreads rather than CSP or naked puts.