Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: edward miller who wrote (70561)	9/28/2022 11:57:15 PM
From: Sun Tzu	Read Replies (2) \| Respond to of 97597

Selling out of money covered calls on SQQQ should be a big improvement. If you really want to protect the principle, you can go one step further and sell out of money calls and buy further out of money calls on QQQ (or sell way out of money puts on QQQ as well) The more you hedge, the less the potential gains. BTW, the reason QYLD moves that way has to do with sold options delta. QYLD should move according to the difference in value of the options they sold, which is nonlinear, whereas SQQQ moves directly with each day's performance. Both SQQQ and QYLD have decays, but SQQQ's is unpredictable even if you know the closing value of QQQ a month in advance. Trading structured derivatives is a fun and highly intellectual activity. But unless your position is in millions, it is best to keep it very simple because the transaction costs and close-to-open risks will take a big bite out of you. For a 6 figure position, what I gave you should be more than enough. If you are going to swing a big position, I suggest that you get the derivatives desk of your broker on the phone and get them to check out the structure for you. You will certainly need them for the proper execution.