/biz/ - Business & Finance

>>27745668
2 months out would cut into my monthly gains a lot. The decay is faster farther out and I rely on the decay. Theoretically you have more time for the stock to increase in value, which can help you out of a bad spot, but I just don't want the underlying to go down more than ~5-10% or my gains start getting eaten up (depending on initial volatility).

My spreads have both legs ITM, with short leg around .6 and long leg around .8 delta, but it can vary. I look for opportunities to make about 30% gains and I look at where stocks have been in the last 3 months, where supports seem to be, and think about where a safe breakeven is and if there will be IV crush or not, check out when earnings are, etc.

In terms of a name, I haven't really found much info on it, other than this section from Options as a Strategic Investment. I tell people about it a lot because there is little info so I'm kind of exploring unknown territory.