Thetagang Strategies - How do you guys calculate your returns? : r/thetagang.

If you wanted slimmer margins, you could tighten the strikes together. My 401k that's 100% SPX fund beats the pants off any options shenanigans I can come up with. I have a paper trading account for trying out new strategies. Here is more on Ex-Dividend Dates & Date of Record. If it rebounds back, you can roll the entire thing up for a credit. Given that most people here came from buying options first and fell back onto this, they probably do not have alpha or enough to make options investing on etfs better than LETFs, so instead of wheeling VOO/SPY try buying UPRO. Theta harvesting is the least profitable strategy after buy/hold forever. Tip #3 → Diversify Your Strategy. A decent living depends your COL and family size, where I live, < $70k/yr with a family of 4 qualifies you for government housing and < $50k/yr is below poverty line. And novice traders are guilty of all of it. A simple thetagang strategy, target to gain 40% in 2024. madison riley hot You trade the wheel to collect the vol premium imbedded in options. Though I think I remember that tos has since added small futures. Supports Short Puts, Short Calls, or any combination thereof. Although if this became my livelihood, I would probably switch to ib because it is the best api. 2 months later, I'm down another $500+. john deere 5105 problems Over two-thirds (67%) of these positions expired. I'm fairly new to selling options, mainly because I never liked trading stocks. Then 2-4 weeks out for the call side. Looks like a lot of buying power left over. Since you're new, lemme give you some perspective of r/thetagang. A couple tips from my 3 years of for the most part trading credit spreads. Theta gang strategy includes numerous variations, including the call credit spread, the wheel strategy, the iron condor and many more. So if you sell a put at $40, collect $1. Alternative is to roll both long and short puts before assignment for a credit---but that is difficult (impossible?) to do with a spread----can often be done on naked or cash secured puts. Roll-Out, Roll-Down, Roll-Up Calculator. When the stock moves in your favor you lose opportunity and when it goes against you hedge is limited and bag hold. bootleg south park plush We are selling options to WSB degenerates using thetagang strategies! 🐌 🐌 🐌 Members Online • Glittering-Cicada574. It's a macro view of the strategies for short and long term use of the approach. Overall strategy is 75% boomer dividend stocks + 25% proper long dated deep ITM LEAPS on growth. I'm a fairly new trader starting actively back in late 2019 and just rode the easy train of WSB tickers (still was some research needed, but the starting points were laid out on a platter). Had I held, I would've been able to close for a profit. Iron butterflies could also be somewhat good strategies but again that's just me. You are going to lose some, but as long as you win a decent amount you will make money. The average trade length was 10. with wheels, cash secured puts tie up a lot of capital but will at least leave you with shares if you're assigned. Thetagang Proverbs We Have All Forgotten: The Wheel is for preserving wealth NOT building it (buy/hold outperforms) Use it as a tactic to learn the mechanics then either get comfortable with margin or realize you are like 99% of humans who are better off with …. The top 3 largest drawdowns, excluding the Great Depression, have. Pretty much any trade I make has the amount of theta and premium I collect in mind. My strategy is what you get when you do an 80/20 analysis on all available strategies and jumble together the 20%s into something that functions. If you are do not have any idea what I am talking about, you should first read up on the basics of options. #wheel #theta #mikey #millions #wsbThe Wheel is among the best theta gang strategies and is the ideal place for someone to start options trading. Take gains and long them into index funds or your favorite stocks. You are betting that the stock will end 2 weeks between $55. For running legit ThetaGang strategies, QQQ and IWM looks like better choices because higher vega, no?. r/thetagang Future plans for this strategy: Additional contracts I plan on adding are 3 more contracts of SPCE, 3 more contracts of GME, DIA, LOW, WMT, NIO, DOW, AMD, and DD with plans to earn about $3,046 a month. Hypothetically, what would be the risk of doing the following: Sell x deep OTM call options with a strike price of s1 (asset price + 10%). Sell x deep OTM put options with a strike price of s2 (asset price - 10%). I can either do nothing and let the shares be. 1 SD covers 68% of a normal distribution, so 16 delta for each tail covers the remaining 32%. DTE) is considerably riskier than trades with more DTE. So thats $850 to $1100 max profit per condor. 25% or better for the RKT Covered Strangle counting both sides ($25 Assignment on Call Side, $22. I would probably drop one of the trades because it will currently use up the full $3k BP. i like to stay flexible and limit my risk. ) Problem is the low-vol on the spy, options selling isn't that lucrative. The Wheel Strategy (AKA The Triple Income Strategy) Wheeling, or the wheel strategy, is the most popular theta gang strategy. There are still thetagang strategies that will work well, PMCCs, credit spreads, and iron condors chiefly. I’ve had good luck trading TNA (triple leveraged Russel 2000) options in the past, but that’s a whole different animal with low volume and huge spreads. Several thetagang members have asked how I pick the right trading strategy. Only a small part of it is in scope for r/Thetagang. Average ROI of about 20% I have only lost on one of these ever, and that was because I closed it early at a loss. Some people are asking about it so not going to be able to post all my positions since this was a long time in the making but tl;dr switched from yolo calls/puts to a 100% theta gang strategy for about 1. The wheel/covered call is a pretty alright strategy, but if you're looking for something similar to that but more capital efficient, I recommend researching the Poor Mans Covered Call. 5%, and the nominal return is 11. 5% of my portfolio, but this has a much higher probability of return (not necessarily lower IV) than a position that is less than 1% of my portfolio. link/kamikaze Strangles have proven …. CSPs involve selling put options while having enough cash to get assigned …. How do you guys keep track of the upcoming earnings? U got any websites or reddit sources? 1. All my trades are logged on thetagang. Sell call with infinity rolling unless they are long term gains against every position. Channel For Crazy Robinhood Trades + Wall Street BetsGet a free stock on WeBull: https://act. You sold a 50/55 vertical call spread for …. Whether you’re a seasoned player or new to the game, mastering Among Us. 5 delta call) and am confused about how it achieves stock replacement. Noticed everything is default to FIFO but the way the market has been raging on this year, feel like that might not provide the most. Gain insights into their trading strategies, track their performance, and learn from their experience. When closing a position, they generally need this to fill ASAP as well. If you are assigned early you still own the long option! So you still cannot exceed your theoretical max loss. Sell multiple $10k worth of puts repeatedly at $500 premium. I was previously just a dividend investor with the vast majority of my funds in VOO. We are selling options to WSB degenerates using thetagang strategies! I know that some traders tend to stick to a handful of strategies they are keen on and ‘trained’ to spot. It limits the return of the portfolio to a specified range and can hedge a …. Rolling is exactly the same as running the wheel. Here is what I have never been too sure about regarding these theta strategies why not match these with a strong divended stock with the idea that it will someday be passive income. The are a number of them with higher volatility so reasonable premiums. Wanted to share my experience with this same strategy: I started screening for cheap stocks with high-ish IV (meaning higher premiums) I did ok with a couple legs of the wheel on UXIN, but I’m still stuck with a bunch of SEAC shares below my basis. 3) Make sure the contracts you are trading have decent volume and open interest. First and foremost I recognize gains of this magnitude are attributable to the high IV environment we're currently in, and. tiktok bios for baddies After months of looking video about all theta gang strategies, I decides to start with the wheel. You receive profits as theta decay runs its course. ) From this perspective, this strategy is not much different from B&H just that it. The later is more of a bullish bet and less of a theta gang strategy. This strategy gains it’s popularity from the fact that you can generate a steady income no matter which way the stock moves. 199K subscribers in the thetagang community. ALPHA FIDUCIARY QUANTITATIVE STRATEGY FUND- Performance charts including intraday, historical charts and prices and keydata. Keep your trade small, ex: don’t allocate more than 10-20% of your available money in one trade. Strategy Goals: Simple! Beginner friendly. retro game store rn vati maternal newborn 2019 It accounts for RSI, trend, moving averages and put/call skew over the past 4 weeks. Also, those numbers will vary depending on the size of the window people average over. Real thetagang strategy avoids high IV, earnings and large anticipated price moves. Otherwise, use TBT when interest rates are going up, as they are now. Bad entries, buying shitty speculative companies, poorly set up options trades, selling under CB for bigger premium, etc etc. Usually those contracts get exercised against me, so I realize 14-21 days of theta profits in 7 days. Iron Condors or Calendars are some examples. used cars under $4000 near me We are selling options to WSB degenerates using thetagang strategies! 🐌 🐌 🐌 The other strategy would be to move an increasingly higher percentage of your portfolio into higher yielding short term notes as the rates are increasingly inverted, as in when the these yields, like 3-9 months, are higher than longer term yields, 5-30. I've set a relatively conservative goal to develop passive income and it's worked for January and most of February, but because of my high trade prices within my portfolio, I'm not sure I'm going to be able to enough premiums to make it worthwhile. Roll the long LEAPS up as needed so they stay at the top end of the underlying's trading range or slightly beyond it. It's essential to have a thorough understanding of options, the underlying assets, and the overall market to navigate these events successfully. We are selling options to WSB degenerates using thetagang strategies! 🐌 🐌 🐌 The #1 strategy for portfolio diversity is position sizing. This should allow for an additional 1 or 2 contracts a month to start compounding returns. I've made it a manual hyperlink. Sell puts when your underlying drops 25% your underlying should be a large cap eg AMZN , AAPL. Would it make sense to sell a deep ITM call spread to take some profit off the table? The trade I’m thinking of is this: Current holding: 500 call with expiry in 2025 Potential trade: sell vertical ITM call spread of 590/600 for $950. Your long strike in the spread defines your max risk amount ($3, $5, etc). Example: 110/100 credit call spread that you received 200 credit for. The "core" six position types ("strategies") according to tasytrade are short strangle, iron condor, credit vertical, diagonal, ratio and broken wing butterfly. Could also be measured as the $3 in extrinsic value over the value of the call option ($37 / share underlying vs $30 strike, so $7/share intrinsic) That in turn means I earned $3 while risking $37. Trading The Wheel strategy with a small account is possible but would need to look for lower priced stocks in order to follow money management of only risking a certain percentage per trade to minimize risk. But poorly executed options strategies don’t just apply to the wheel, they apply to all trading strategies. You sold a 50/55 vertical call spread for $1. Since you already have shares that are over a year in holding, see if you can change your brokers share treatment to LIFO (last in first out), so you can be sure to reduce you trading tax burden to only your trading activity. With so many options available, it’s important to not only find the right vehicle but also negotiate the best price. This is one that I harp on a lot. 1- not increase by more than the premium of the put+call. " Picking the right securities to implement a thetagang strategy on is pretty vital. All it takes is 1-2 strategies. RYDEX VARIABLE S&P 500® 2X STRATEGY- Performance charts including intraday, historical charts and prices and keydata. Calendar spreads or ratio spreads are preferable to me, I'm really not very directional in my trading. r/thetagang is, for better or worse, an echo chamber for "the wheel. Put on about 10 CSPs per month since, havent been assigned yet which I understand is quite lucky, I'm selling 20 delta 30-45 DTE, and keep 50% of margin in cash. accident i 25 colorado springs today Same $1000 of capital, same over/under line, but a higher premium on SPX, plus the better tax advantage. Sell 3 contracts of the SPY, $485 put, of 5/17/24 (a monthly expiration), receiving a $2. They are short Theta by selling option contracts as their strategy to profit from option buyers as time value decays and the option eventually expires. most theta strategies are considered to be around 10% - 30%. 3K subscribers in the babytheta community. 5k precisely to test my mettle in thetagang strategies. #robinhood #wallstreetbets #stocks #options #spreadsIt's time to move on to the intermediate level Theta Gang strategies, starting with the Put Credit Spread. The "thetagang approach" is an extremely unsophisticated[1] option selling strategy even in the realm of retail trading. With that size, go check out r/PMTraders and study up on Beta-weighting. Stock prices can't be fully normally distributed because. com and was linking correctly there, apparently its broken on new. We are selling options to WSB degenerates using thetagang strategies! 🐌 🐌 🐌 ADMIN MOD I'm looking for a thetagang discord or other community to learn from and be apart of. I personally would rather trade the QQQ options as they’re more liquid. ) It will also increase the amount of trades; as you will trade more frequently which means your trade entries are completely. 1 each for close to a 10% return but I'm holding a high IV meme stock so its risky because the stock could move against me and now I'm a bagholder. The back-of-the-napkin theta calculation is to look at the premium you received and divide it by the DTE. If you have $100,000 then you can get 0. As it gets near ATM, it’s extrinsic value is highest, so rolling is best done in the ATM zone (turn on extrinsic column to see this in TOS and TastyWorks). I’ve been look at: -diagonal spread iron condors -calendar iron condors -ratio spread iron condors (front and back ratio spreads) -broken wing butterfly straddles r/thetagang • Wheel strategy 100k in 3 month with 26% annual projected. But given the extremely short expiry you have on the short leg, the play might well be over before IV drops. IMO the best beginner strategies are covered calls and the wheel. ICs with 4 legs is a complex nightmare to try to roll, and credit spreads are only slightly better. The Wheel: An IMPROVED “Buy and Hold” Strategy. Made by Option Sellers, for Option Sellers. I am now at over 60k, all theta gang strategies. Just remember to come back to TrackTheta to track your. Also I know that there are better strategies for earnings seasons (iron condor, straddle, strangle, etc. That same trade would only account for 15% of your account. I gotcha fam, take a look at this video (this timestamp in particular). Obviously, it’s exclusively TSLA-focused and bullish. I close CSPs at a 50% profit to open a new one as this avoids early assignment and gamma risks, plus keep trades moving as some can drag on to …. AMZN - weekly credit spreads 0DTE OTM less than 10 Delta has been an easy winner for the last 5 weeks. I want to figure out how to use this position to generate cash flow that I can use to acquire more TSLA shares as well as to build out other investments as well. Which tool is better? Hammer or screwdriver? Wheel is safer but less profit. Fortunately, there are several strategies you can employ to maximiz. Seems counterintuitive but I was still getting enough credit relative to. There are no ads on this website! THETA GANG is 100% funded by users that help contribute from Patreon. It has the same market risks of holding stock along with the 100% allocation of your portfolio risk. But it's extremely more capital efficient, as you only have to put up the capital you're risking, as opposed to the cost of 100. Tax Lot Implications on Theta Gang Strategies. For example, looking at pricing right now, but/write at the $240 strike nets you $13. CSPs as a theta gang strategy also means that you are absolutely willing to get assigned these shares and hold them while you sell CCs against them. , but I'm really looking for criteria you use to pick the companies to trade this type of strategy. Trying to wrap up my head around how credit spreads can be a theta strategy, since the maximum and minimum of a spread is directly equal to the width of the spread itself. First the wheel is easy to understand from a buy and hold perspective. Some commenters requested examples specific to r/thetagang strategies. jet flyover today Does this kind of policy go with the r/thetagang strategy. We are selling options to WSB degenerates using thetagang strategies! 🐌 🐌 🐌 Members Online • [deleted] My trading strategy is to sell short calls against leaps and shares, and avoid assignment as long as I want to continue holding the stock. however you do have some years where 400% is entirely possible. Let's take it that the VIX trades at an average of 18pts. those are all "1-in a million" events, all. A strike price of 375 is about 15% more than the current price. The average profit per trade was paltry compared to the 15DTE of only $1. Overall, it appears to me that the juice might not be worth the squeeze. Weekly close to the money PMCCs are a very effective strategy but as others have said it’s a directional strategy and only works in a very stable flat or bull market. They pretty much are all shitty penny stocks. Total risk on trade is $400 for $100 credit. You don’t have to time the market but you can profit from sentiment change. After trying to grasp gamma scalping to keep a delta-neutral portfolio for a few weeks, I decided to put pen to paper to see how it works out. 205K subscribers in the thetagang community. 186K subscribers in the thetagang community. Rolling down and out is better, as long as you can do it for a credit. I want to avoid selling to be able to realize long term taxes on holdings, but with short. Jan 16, 2024 · One strategy that has gained popularity among traders is the “theta gang” style of trading. Like any trading strategy there are different ways of running the strategy with different risks and rewards. This community is devoted to the teaching of strategies, trades, resources and lifestyle that help traders become consistently profitable. I have a google sheets I recently started for the wheel. Theta Gang is the slang for being a member of a group of other option writers with the mindset that selling premium is a preferred strategy than buying options. The better bet when you are playing directionally is always being long an option. white oak wood near me The best option in my opinion would be using synthetic long/short stock through ITM LEAPS. Focused on high IV options (NIO, TSLA) with a combination of. In a separate trading account, I have been running a systematic trend following system on a wide range of futures. mariner 150 magnum Choosing to roll for a debit is not "losing". The major index ETFs are great for trading, but they currently have the lowest IVR I can recall seeing. Theta Gang option strategies don’t try to …. Put credit spread (if you're bullish) or call credit spread (if you're bearish) slightly OTM is the way to go. For example, if you sell an option contract that is trading for 3. Exclusive members-only content. Thetagang strategies work fine in retirement accounts and I assume a significant percentage of the option trading done by retail is done in retirement accounts. You also collect premium from both sides like a strangle rather than 1 side with a single OTM option. Worst case is that the stock expires under $7 and I only keep the. Forget credit spreads, diagonal spreads, iron condors, and all that often complicated jazz. Out of the money options don't decay the same. The Repair is a 1x2 ratio spread per 100. Trusted by business builders worldwide, the HubSpot Blogs are your number-one source for education and inspiration. In today’s fast-paced world of marketing, efficiency is key. When one side is tested, roll the other to the same …. Super deep dives into financials and business fundamentals. We are selling options to WSB degenerates using thetagang strategies! 🐌 🐌 🐌 ANSWER: What most traders lack is someone to give them the confidence when things don't go their way with a given strategy, this can make a day and night difference in a traders results!. GDX, XLU, and XLF are 3 of my favorite to trade options with in general right now. The margin req and maintenance are the same: 45% of $175 plus the $5 = $67,000 for these 8 options. Her next question was why would someone pay you for that. 16 delta is for delta neutral strategies. I am using Silbergleit's Official Trading Framework. 08 delta puts every 35-45 days x 10 contracts and sell the occasional covered call. Thetagang is intended to be a community of people who share strategies and discuss ideas related to selling options contracts with theta as the central source of value realization. Not really, SPY really is the best for weeklies and volume. FI/RE (Financial Independence / Retiring Early) is a money strategy that's sweeping the nation. This isn't a theta play at all, it's just a method to reduce the buy in price of the underlying. super popular strategy, would definitely recommend especially at these frothy valuations. I have a dream, that one day, I see my savings rate as a percentage for. For the sake of simplicity, I stuck with emulating long straddles to keep the gamma direction straight in my head. This strategy focuses on options’ time decay and the premium that option sellers collect. I'm in the green, so now it's fun. Hello Thetagang! Apologies in advance for the glib title - and the length of this post - but I hope to demonstrate a potential strategy of the highest quality. Strategy Summary: 2-Lot of long stock, hedged with a single Short Call and a 1-week Put Diagonal (Debit) Spread. Let's say strangles, for example. With credit spreads, your long will decay faster than your short. (Six times to make my money back). Roblox cos don't short 5 year olds and their parents' credit card. We are selling options to WSB degenerates using thetagang strategies! 🐌 🐌 🐌 Options Fundamentals -- The Greeks -- Strategies -- Current Plays and Ideas -- Q&A -- **New Traders**: See the Options Questions Safe Haven weekly thread Members Online. You might be able to hold your positions through market volatility, but if your options expire you won't be able to open new ones. In this case, profit is made if the stock stagnates, falls, or even rises slightly. 00 debit, you are still profitable on the position. If you aren’t buying crap stocks the realistic return is. So it depends a lot how you equip them. If I had 4m in cash, I’d just let fidelity manage it and go retire. No more than 10-20 contracts at a time. 23k in deposits and 67k in steady profit from theta. 5 Calls an expiration of the 26th will give me a premium of $18. The average cost per share is about 200$. What are bearish thetagang strategies? 🐻. I'm thinking of trying out a short butterfly call spread on SPY (ATM short call, buy 2 middle long calls, sell 1 short call above 2 long calls). Our community provides a platform for helpful and honest discussions aimed at helping you. What are the most aggressive thetagang strategies? The most commonly touted strategy here, the wheel, is often considered a relatively passive thetagang strategy (of course depending on the underlying), so what are other strategies that are more aggressive? 8. Just started my first ever thetagang strategy. 215K subscribers in the thetagang community. I recommend setting a stop-sell order after your stop-buy goes, that way you can dump the stock if it begins falling. Small account friendly (< 20k) Mechanical rules based (No discretion!) Based on Quantitative research. Spreads $5, $10 wide sometimes up to $20 in liquid options market. Same thing for call but flip it where your mother is selling the option to you. There’s a common misconception that theta decays most from <45 DTE, but thats only true for the 20-30 delta options that theta gang specializes in. They embark on directional trades like Verticals… but there is a new world to explore when trading Delta Neutral strategies. I do covered strangles, and yeah it's boring but it's been very "safe" and profitable. 50 CSP on the Put side: Aiming for a total of $0. chevy van wiring diagram SPY is the best tool there is for options liquidity, tight spreads, and quick fills. com if you'd like a chance to show up here! A stock and options trading community logging their trades to share ideas and learn from each others mistakes. In today’s digital age, having a strong online presence is essential for businesses to reach their target audience and drive engagement. Live tracking for Option Sellers, made simple. So you need to put up the margin requirement for 3350 x 100 = 335,000. You pick a strategy, pick a few names, execute it, and then you do your time. Having big gaps on your resume can feel embarrassing—you know the person reading it will take note, and probably will consider it a negative. Also the expirations of DEC usually experience a big drop in IV. If you are a beginner, selling strangles without hedges is suicide. I would appreciate hearing about the criteria you consider when selecting stocks or ETFs for this strategy. The Market Trading Game Changer. I'd be curious if anybody's done real mathematical studies on the 50% profit close strategy and its limitations. the state obituaries sc human mating with horse It was working like a charm while the IVR was below 15ish. You will know exactly how much you gan gain or lose going in. When people say it kicks in the final month, they only ever show the decay graph of a 50 delta option like I just described. If you can turn over 2-3% once a month, you. For instance, why not just implement thetagang on some …. But since that only really resulted in me having a lot of stocks to write CCs on, it wasn't a big deal. An out-of-the-money call option is sold, and another more out-of-the-money call option is brought to hedge against a strong upside move. Doesn’t matter your strategy risk management and controlling emotions is key. This strategy is best for when you expect a slow recovery that will end up at least somewhere between the strikes. theta decay IS higher closer to expiration. Hello Theta Gang, Has anyone on here just ran an iron condor on SPX as wide as the expected move (1 ST Dev) of the day? I guess if you wanted to be more risky you could even run a strangle as well (I like defined risk though). so you are correct in this part. We are selling options to WSB degenerates using #thetagang strategies! 🐌 🐌 🐌. Problem with the wheel like you said is that you can lose a lot when selling your put, if you sell a put for $14 strike on XYZ, and XYZ tanks to $5 a share, you're going to have to …. If the stock moves downwards and you sold a $12c 2/05/21 @ $0. But then this strategy tends to lag compared to a simple buy-and hold and also shares no upside in recoveries of the underlying. The wheel is not meant to be a delta play, it is really a short volatility strategy which benefits from theta (as all short vol strategies do). We are selling options to WSB degenerates using thetagang strategies! 🐌 🐌 🐌. We are selling options to WSB degenerates using thetagang strategies! 🐌 🐌 🐌 Members Online • epps. Should I just liquidate it to do purely thetagang strategies? For context, I (24M) got into the stock market because of the GME fiasco, got into options without knowing better and now at a loss of 9k USD. The 420 short put is at the 20 delta and the put side. Sell the shares short to hold -100 shares, then sell a put that if assigned +100 shares covers the position. These put options offer the highest ratio of bearish premium paid (IV) relative to historical volatility (HV). Go to thetagang r/thetagang • by l0lwut20. I mostly do CSP, CCs, and Short Strangles. Here’s one that doesn’t pop up often : Tradier. com, persuasive strategies are techniques that a person uses to influence another person or group of people to take a certain action. Ignore capital efficiency, I am just. 45, your profit at expiration is $345. Among Us has taken the gaming world by storm, captivating players with its thrilling multiplayer experience. Started actively trading thetagang in November, before that I was on and off trying different strategies and still understanding how stuff works. This is a strategy I have been paper trading weekly options on for a few stocks I pay attention to that have been trading relatively sideways with recently. View discover's THETA GANG profile and trading history. The notional risk is the same whether you sell a 75 delta put or a 1 delta put. I decided explore two examples, one directional and one delta-neutral. Here are the 4 popular theta gang strategies I’ll cover [Click to Skip Ahead]: Put Credit Spread; Call Credit Spread; Naked Puts / “The Wheel” Short Iron Condor; The first two theta strategies are great for Beginners and seasoned traders alike because your max loss is limited and you know exactly what that max loss would be. Most traders come from stock trading and transport this knowledge to options. I wanted to ask a question about closing CSPs instead of letting them expire (if it's a good opportunity). Yet, when adding up the deltas of the calls (0. what advice would you all give someone with a small investment account to grow over time?. But, speaking from personal experience, it's very easy to tell yourself you'll sell a CSP and be absolutely ok with buying 100 shares. I just looked at 17 Jun (42dte). Nov 23, 2023 · The theta gang strategy is an advanced trading tactic that capitalises on the time-value decay of option contracts. I'm not saying thetagang strategies are bad and there are definitely some people who make good returns in the long term. The strategy which requires 100 shares is the wheel (cash secured puts) and TastyTrade doesn't recommend this at all. Simple, yet powerful strategy: Take David Sun's Theta Engine (Short Put @ 15 Delta, 90 DTE) and turn it into a 3:1 Put Ratio Backspread when IV Rank is above 50. For example, the 70 year average S&P 500 real return (since 1950) is about 7. The trend strategy has been running longer than. Delta is decaying over time (charm), and the option becomes more and more worthless, so the decay rate slows down. Hello thetagang community! Just wanted to share a quick update on my wheel strategy #3 post. The whole video is about managing at 50% but that slide alone speaks volumes. Hi All, Looking for a recommendation on how everyone scans for companies to run the wheel strategy on (or any strategy to be honest). Just make sure you have a plan for each trade. Anchor your short positions at between 16 and 30 delta. You can see how that strategy has yielded outsized gains (20%) on the short-term TMF play, but consistent returns with the TLT play (despite being on the "wrong" side of TLT moves the whole time): The next day I lost $100k doing the same thing. Directional bias ranges from -100 (bearish) to +100 (bullish). I've grappled with this question for a while. I know I will probably get torn up about this post, but the only backtesting I see on this subreddit is linked to a small Tasty Trade backtest of the. Also: I might be wrong, but I don't think SPY is a good choice for ThetaGang strategies (I was gonna try swing-trading with spreads, and spy options are cheap. Hey guys, I built this "options selling backtest" report and wanted to share it. Just a caution try to move to rusk defined strategies. The total was 374 trades with an 89% win rate, a max loss of -$5169, average premium collected was $474. Positions for this strategy include short straddles, strangles, condors, and butterflies. However, it can also be a daunting task if you don’t know where to start. thats when it starts to accelerate. An ATM call will bring in about 1,900 at 50,000. The Wheel is a strategy that surfaced on Reddit , but has been used by many in the past. Symbol, Date open, date closed, days held, type [CC or CSP], Info [ 24 Apr 20 $15 C], capital used, premium received to open, fee, premium paid to close, fee, profit, profit %, annualized [for fun], notes. No spamming of discord links, patreon links, referral codes or paid services allowed. Strategy Hypothesis: Applying a combination of tastylive research and the momentum factor can achieve the goals defined above. First videos on options trading I saw using an analytical approach and backtesting. llano county scanner 1980 chevy truck price I was good at judging when to be defensive with the 16 delta, but I'm having trouble realizing when I should get defensive with the 30. myov buyout 38K views 1 year ago Theta Gang Strategies. I mean: this strategy ensures you are short the stock if the earnings are bad or long the stock if earnings are good after the earnings report. The brokers know these strategies increase in risk and want to make sure a trader knows what they are doing before giving them the ability to blow up their account. Wheel has 6 strength but 8 health and 9 dexterity. The truth is, it doesn't matter. The second half of the basic Theta Gang strategy: the Cash Covered Put. When a signal is received, a call/put is sold which expires today at the targeted delta value (25 in this report). Before the Covid crash, volatility was pretty low from what I hear, this is good for true neutral strategies, aka the holy trinity, strangles, straddles, and iron condors. I know about finviz, barchart, etc. Collect more premium to increase your theta. Learn how to make adjustments on those strategies. Strategy assuming ownership of 100 UVXY shares (cost today $942). You don't pay margin interest so you can leverage yourself for free, and with pretty set odds of winning you can guarantee amazing returns. Instead of just waiting for a good high IV environment, what are good strategies for these low IV times? Just Wheeling? Credit Put Spreads? What does Thetagang say?. After getting cleaned out from buying options I read a lot of the advice in here and learned how to effectively switch sides and sell options. Thetagang is the seller that profits from the time value of every option. snowex dealers near me Stocks played over the year: …. Weekly plays burn theta faster and have a higher return per day in the market. Strikes: The at the money strike. Daily Discussion Thread for November 14, 2023. I think if I was going for highest returns, I'd sell credit spreads on volatile stocks. 192K subscribers in the thetagang community. Theta Gang - WSB Wheel Strategy Options in Stock market Tank Top.