Now that @smasty160 (Sue) has informally introduced the “lophir” to Options Bistro, I’ll start sharing some of my trades. By way of a quick refresher, the lophir trade consists of selling 30DTE 30/15 delta put credit spread x2 and buying a 40/22 delta put debit spread x 1. All of these trades are net credit. You may notice me tweaking delta and DTE at times. My goal is to make some quiet money on a low maintenance trade.
STO +5 1/-2/-1/2 SSO Sep21 124.5/123/120.5/118 PUT/PUT/PUT/PUT @ .55 credit. GTC order to close at .17
STO +4 1/-2/-1/2 TQQQ 100 Sep28 68/65.5/63/60 PUT/PUT/PUT/PUT @ .60 credit. GTC order to close at .18
Buyer beware. These trades are in the experimental stage. Current plan is to cut the delta in half when price hits the profit peak on the risk graph and cut it in half again when it hits the breakeven price or close the trade if it’s near expiration. Our backtesting indicated that we wouldn’t need to manage often but live trading can make a liar out of backtests.:-)