SPX
After doing some paper trading, I am ready to dive into the FuzzyLEAPs trade:
Bought to Open SPX Dec 20 2030 7700 Puts @ 927
Sold SPX Jan 13 2026 6925 Puts @ 3.00
I plan to scale in and out of the daily short puts, depending on how far SPX is above its 12-Month MA. For this opening trade, I sold half of the available position, leaving half of the LEAP puts uncovered. In future posts, I will represent this as a percentage, like this:
LEAPs 50% covered.
Also, I am simply buying the Put, without selling the Call Spread, just to keep it simple. I plan to always keep the LEAP Puts above the short Puts, to eliminate any margin requirements. I picked the 7700 LEAP Put to start with simply because it is 10% ITM.
My target delta for selling daily Puts is between 10 and 20, but that will vary of course depending on market movements.
Options Bistro 