/biz/ - Business & Finance

>>54326799
>>54326867
Now if you want to be very aggressive here on theta farming on normal stocks, but do it safely, I would recommend if you have the stomach for it to do a ratio back spread.
So for example lets take SPY, you sell a Put but the premium covers the cost of two more Puts and then some.
While the spread is a bit wide in that scenario you'll make some money via the Put you sold going worthless, but if SPY tanks you make a lot more money. Issue here is if SPY crabs for the whole duration of the trade.

>>54314398
>>54314443
Also to add,
The idea with a delta position like this is to harvest premium in any direction so I don't need to watch it.
As long as SPX moves, which it will, the trade makes money. Overall it's just an issue of dragging the strikes around to see where the best risk-reward is located.

Also also, since SPX is an index option as you may recall there's no early exorcise risk so you can functionally let it expire with no worries on this.