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- Manlobbi
Investment Strategies / Mechanical Investing
No. of Recommendations: 1
Has anyone tried any advanced option strategies, like vertical spreads, iron condors, calendar spreads, and double diagonals?
No. of Recommendations: 2
With EU residency there is no other way to trade US ETFs (QQQ,IWM,TLT) than by utilising options. So I use many setups as long as they are not time spreads. Mostly index and futures put spreads 90 to 120 days DTE, closing and reopening the position within 35 days latest, more often less than 30 days.
My preferred position is opening SPY at delta 5 - 7(0.05 - 0.07) with 360 DTE and closing/refreshing the position within 35-42 days ( as soon as I have earned a third to half of the premium received). Rinse and repeat. Margin requirement with pm is about 2k IM for those 100 shares!
At the time of this writing SPY 350DTE (30June25) delta 5 would be 400, delta 7 would be 430. Premium received would be 320 or 450 USD. This would mean I earn up to 150 USD within 6 weeks on an IM of 2000 USD. Rinse and repeat.
But I`m rather sure, Jim and Zeelotes know better concepts. And even on this board ( in AOL-times) flies were traded as an advanced version of 6/3.
Regards
Hittfeld
No. of Recommendations: 0
Are you saying you buy DITM leaps on SPY?
No. of Recommendations: 1
Are you saying you buy DITM leaps on SPY?
I have bought DITM leaps on XSP. Currently looking at one with effectiely 2.67X leverage at 4.18% implied interest rate.
For comparison, IBKR margin is 7.8%. Schwab is 13.6%. Oof!
No. of Recommendations: 0
No, I`m not a buyer but a seller! Selling far out of the money puts,leaps, but not holding them longer than a couple of weeks.
No. of Recommendations: 1
No, I`m not a buyer but a seller! Selling far out of the money puts,leaps, but not holding them longer than a couple of weeks.
Hi Hittfield,
I am also in the EU and am affected by the ETF issue you mentioned. I have not tried this but am wondering if you have. I believe if you sell in-the-money puts close to expiry and let them expire, the ETF's will be put to you. I'd like to hear from someone you has successfully done this. I am still holding shares in QQEW since before the issue with ETF's arose. My understanding is that I should have no problem selling but can't buy again unless something like the put trick works.
StevnFool
No. of Recommendations: 4
Yes, in general it works. Even rotational strategies, which require exact number of shares (i.e. 58 QQEW) can be replicated despite the contract size of 100 per contract. But when you are a resident of the EU, you might as well use a US broker, many of which let you acquire ETFs which have no KID without the trick. Some, like SCHWAB (TOS) or IB won`t, others like Tastytrade, eOptions or Tradestation won`t pose a problem. Still, for EU based clients IB-Ireland would be the most economical solution, as they allow all customers Portfolio Margin, even on account sizes of less than 20k.
Regards
Hittfeld
