Taking the ITM vertical debt…

Taking the ITM vertical debt spread idea a little farther, here is an example. Best returns appear to be on the leveraged products but higher risk, obvious with the higher premiums. Here is a TQQQ example. 10 point spread, 20 DTE, 10 lot $1350 profit, max loss 8650 if you don’t manage it, and it is 33 points ITM now. Could it hit the short strike, possibly but would require more than a Feb 6 event to get there.

The more I look at these, the more I like. Easy to roll to #fuzzy if needed. Set up a ladder and would be a good income stream. Thoughts, other comments, see anything I am missing? I have an ERX one on now, it was challenged last week but never hit the break even point. I will likely roll it 3 weeks out this Thurs. or Fri. to avoid the assignment fees as long as it will close at or a few pennies shy of 5. If not will let it expire.

If it works I think we should call it a #supercharger

2017-12-01-TOS_CHARTS