/biz/ - Business & Finance

>>24689718
I use a mental stop loss for the SOXL, basically should its underlying (SOXX) dip under the 200 day moving average I assume that volatility is going through the roof which is bad for leveraged ETFs so I'm out of SOXL. I also sell calls on my SOXL every month which is kinda sorta a hedge. My futures account is where I actively trade though and I'm ready for anything there.
Here's a good paper with a strategy for trading leveraged ETFs based on volatility if you're interested: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2741701
>>24689805
I'll just tell you what I do and maybe that'll help. Right now I'm sitting on a whole bunch of SOXL shares. Every month I sell calls on my shares about $100 out of the money, take the premium and buy TQQQ leaps calls and immediately sell monthly calls on those, then take the premium from that and buy FNGU. If the market moons, the appreciation of the TQQQ and FNGU will offset the roll costs of my SOXL calls. This helped quite a bit this month.
If the market nose dives and SOXL underlying SOXX goes under the 200 day moving average, I sell all of my SOXL and sell SOXL puts 50% down. I do this until either those puts get assigned or we go back above the 200 day moving average on SOXX at which point I buy my SOXL back and start selling calls again.
In my futures account, I run a trend trading strategy on the Nasdaq (/NQ). When the market is going up, I get in but I have a stop loss. If the stop loss is triggered I'm out but will get back in should things turn around. I run that at about 3x leverage. I do a reversion to the mean strategy on the Russell 2000 futures (/RTY) where I basically buy the dip and sell the bounce. I also trend trade the S&P 500 but use a signal service.
On Webull I also have a bunch of SOXL but buy the dip/sell the bounce on a few other stocks like HUYA, TMF, KOLD, etc.
I also sell put credit spreads on SPY 3 days a week. The short is 10 delta, long is $10 below that. So far so good