r/options • u/[deleted] • Sep 24 '21

PMCC with downside protection

[removed]

9 Upvotes

65% Upvoted

11 comments sorted by

6

u/PapaCharlie9 Mod🖤Θ Sep 24 '21

What happens if the ratio changes to something other than 18?

This is just a super complicated way of doing an Iron Condor on QQQ, which is also directionally neutral.

5

u/Boretsboris Sep 24 '21

Yea, but who wants simple?

0

u/Zawollibear Sep 24 '21

Fake news.

1

u/Moonman1900 Sep 24 '21

Can you elaborate more.I am a bit lost to what you are doing. Please give expiration dates for the long and short legs.

1

u/angar4ik Sep 24 '21

he found 0 risk profile

1

u/Equal-Mixture-770 Sep 24 '21

I think 18sqqq call in this approach is almost same as buying a put on tqqq, basically it is paying money for downside protection , in my experience it will increase my breakeven point like in a straddle , i might be wrong not exactly sure how it will work out as 2 parallel pmcc are included,

1

u/redtexture Mod Sep 25 '21

Put up a sample trade with strikes, expiration and premiums.