With so many possible vertical spread combinations singling out the best one is mind numbing, to say the least. Using these steps can help simplify the process and create confidence that major factors haven’t been ignored.
As the title suggests, options strategies are infinitely easier with volatility reaching these extreme levels. That doesn’t mean we should throw caution to the wind and trade every strategy known to man. It does however offer an opportunity to make some quick cash and in this market that could be much needed.
So, generally speaking I don’t love any short term trading strategy.. mostly due to the fact I lose more money than I make but given the simplicity and potential power of this new strategy it seems reasonable to share.
In my last post I mentioned placing a pin in the discussion about finding trades after Fib levels were identified. In today’s post were going to pull the pin and continue our conversation about high probability trades.
Lets review a strategy that is far too often overlooked in this newest post… how to trade a poor mans covered call.
The poor man’s covered call is an easy, low management, and relatively low risk strategy, traded the same as a classic covered call, only considerably cheaper. Let’s start by identifying a trade candidate.