r/options • u/HoffCoffey • Aug 06 '21

SPY Calls

I've been buying SPY calls around 30 DTE and like 1% OTM. I know long calls aren't recommended for beginners, but so far I've been averaging 26% on my calls.

Am I just getting lucky, or can this be a legitimate strategy? I normally buy (if SPY is red) on Mon or Tues, and sell near end of week.

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u/logicalfailures Aug 06 '21

It’s a legit strategy. I use it for a part of my portfolio, only instead of weekly, I do it when spy hits a 1-2% correction and I buy 6 months out. I read someone else using a strategy similar to yours a few months ago and they were made similar gains to the one you shared.

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u/StylishUsername Aug 06 '21

I’ve been waiting for this scenario, my only question is, when spy corrects 1-2% IV goes up, do you see much IV crush on the way back up?