fuzzballl 11:33 am on Monday, December 16, 2024

SPX

With VIX down here this is about all you can hope for in a one day roll. Wed gets a little better with JP coming out to say hello.

Rolled SPX Dec 16 2024 6070.0 Puts to Dec 17 2024 6070.0 Puts @ 6.00 credit (19.50 total now)

fuzzballl 12:08 pm on Monday, December 16, 2024

Quick summary:

Last 10 trading days (counting tomorrow) rolls are within a 15 point range collecting a little over 50 points in premium. No change in the LEAPS.

This is how I imagined the strategy when I first started experimenting with it. Definitely think this big rally over the last year is an outlier but even then the strategy still works…just not as good.

Like I said in one of the videos….it ain’t going up forever and when it trades sideways to lower (without crashing) you’ll make bank. Once I recoup all my initial investment in the positions I might leave one uncovered to help in an implosion.
- MikeL 12:25 pm on Monday, December 16, 2024
  
  Is there a strategy in case you make Mr. Market really mad?
  - fuzzballl 12:41 pm on Monday, December 16, 2024
    
    Roll the SPX put sales out and down and start selling SPY puts.
    - MikeL 1:01 pm on Monday, December 16, 2024
      
      I noticed that there is a point when you cannot roll even at the same strike, like being ITM by 200-300 points, which is only 5% down. Even going out 2 months, would have to pay to roll.
      So in a rapid move down it is hard to project how the trade would react.
      - fuzzballl 1:12 pm on Monday, December 16, 2024
        
        You can generally go out and down a month out for a little credit. Only time I couldn’t over the last two years was when the VIX curve was all weird with the election coming up. Just roll down best you can each month and wait. That’s why I use 3-4 years out for the LEAPS. Covered a lot of that in video 3 (the risks). Also talked about how that can be a good thing too when it happens. Just need patience and know how it will look in your account. 🙂 🙂 I do have an ultimate long term idea on how you could really take adavantage of a massive implosion. Will take awhile to get established.

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