fuzzballl 8:19 am on Friday, February 14, 2025

SPX

Roll out to Tue and slightly up.

Rolled SPX Feb 14 2025 6040.0 Put to Feb 18 2025 6055.0 Put @ 5.00 credit (12.00 total now)
Rolled SPX Feb 14 2025 6045.0 Put to Feb 18 2025 6055.0 Put @ 4.75 credit (14.95 total now)
Rolled SPX Feb 14 2025 6045.0 Put to Feb 18 2025 6055.0 Put @ 4.75 credit (15.20 total now)
Rolled SPX Feb 14 2025 6050.0 Put to Feb 18 2025 6055.0 Put @ 4.25 credit (16.25 total now)
Rolled SPX Feb 14 2025 6055.0 Put to Feb 18 2025 6060.0 Put @ 4.60 credit (14.10 total now)
Rolled SPX Feb 14 2025 6060.0 Put to Feb 18 2025 6060.0 Put @ 4.75 credit (14.95 total now)
Rolled SPX Feb 14 2025 6065.0 Put to Feb 18 2025 6075.0 Put @ 7.00 credit (16.50 total now)

MikeL 10:41 am on Friday, February 14, 2025

Two questions for you:
1. Based on your results with SPX, are they better than your trades with SPY ladder?

2. Have you looked at trades buying LEAP SPX puts and calls, and then selling ATM strangles?
I realize that more cash would be required, but premium is high.
- fuzzballl 11:12 am on Friday, February 14, 2025
  
  1. SPX blows the doors off of the SPY ladders especially since I can be in the SPX positions basically forever and gradually build the size. Couldn’t be happier with how it’s going.
  
  2. Haven’t really looked at that due to the cost. I’ll take a closer look though. Part of the reason I use synthetic short LEAPS instead of synthetic long is the out of pocket cost to set the trade (big call skew in SPX) and it just seems puts are easier to roll than calls when they get deep in the money.
  
  The whole strategy is a big big long term picture. Accept the fact that long term you will lose money on the LEAPS but the daily sales cover that and plenty more.
  
  If you do the math on some of the possibilities the numbers get pretty staggering. Say you average 4 bucks a day for a year. That’s over 100 grand. That covers lots of LEAP losses. In fact it covers way more than max loss. Then you still have another 4 years to sell against that position. Multiply that by whatever your goal is for max size. Take out some months with no sales due to rolling down and it’s still pretty wild.
  
  I’ve got some ideas on even more risk mitigation that I’m excited about too. I look at the LEAPS like a rental house. Sometimes it’s empty with no renter, sometimes it needs some maintenance, but in the long run it’ll pay off.
  
  I started a year ago with one position. Very slowly added and I’m still adding a little bit over time. That trade I closed a week or so ago that I posted was just one position over 11 weeks. Do the math for annually and a lot more positions and it gets crazy.
  
  BTW…I have a you tube channel for just misc stuff I’m up to but didn’t want to get option stuff involved in it so started a new one. When I get bored or have some random thoughts I throw something on there.
  
  Options channel:
  
  https://www.youtube.com/@Fuzzys0DTESPXProject/videos
  
  Regular channel:
  
  https://www.youtube.com/@dronesandstuff61/videos