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Hi,
was trying to find any strategy that is long options only (ira friendly). Or if it goes short options, that it would do so via spread, instead of naked.
Attempted to use C2 explorer, but couldn’t find any strategy like that.
Am I just failing to find one or it simply doesn’t exist?
Might take a look @ Day Trader Futures…Good longer term track record, does not hold open positions overnight. Very reasonable DD.
Earlier this month, I introduced a long only option strategy. It follows the same algorithm as my other Enhaced strategies, but does so with long puts and calls options on SPY. It is not only IRA friendly, but has built-in risk control since any loss is limited to the cost of the option. If you like, message me and I’ll also send you my weekly summary that I send to my subs. Although it addresses other Enhanced strategies I have, it will give you a good overall idea of how I approach this.
Sagor, I’m sure there are some great long only strategies here on C2. You probably know this, but I see the big advantage in using long options is that excessive losses are avoided during extreme market declines (“tail” risk). Another key attractive feature of this approach is that when the market falls, delta decreases. When markets increase, delta increases. Its like a built in “adjustment”. Of course changes in volatility will affect price but usually only when the market moves favorably for the option. I target options on SPY ETF, a very liquid security with a deep option market as well. The amount of options long I buy at any given time will vary between 10 and 20. With delta taken into consideration, this would equate roughly to 1 to 2 ES contracts. The expiration dates I use is approximately 30 days. Options are typically held 2-5 days. The theta of each option is about $0.03 to $0.05 so the manager needs to do something to not let that be a drag on return.
As an aside, I wish C2 supported options on ES contracts. That is really more in my wheelhouse for many reasons. One big one is how the options settle. The ES options settle in cash while the SPY’s settle in stock. With ES options in my personal account at TDA, I constantly milk premium from very short dated options, most of which are covered or used to set up positions in ES. I really hope C2 will allow these at some point. The SPY options are OK. but not optimal.
Thank you, but will have to wait once you will have at least 6 months of track record.
Also TOS would give a good confidence boost as well.
Absolutely a great filter. We’ll get there.
