Option Trading Strategy – Buy QQQ Sell SPY

This month’s strategy is buying quarterly QQQ calls and selling quarterly SPY calls.  You can follow the link to see how this strategy has played out historically.

The idea behind this strategy is that the NASDAQ and SP500 tend to move together, but QQQ is more volatile and makes bigger moves.  Selling SPY partially offsets the cost of buying QQQ when the market is down, and QQQ outperforms SPY when the market is up.  At least that’s the theory, you can see how that compares to reality.

I appreciate all the emails I receive to discuss stock (/ option) trading, so if there’s anything you’re interested in please send me an email:

joseph AT StockMarketMovement.com

Option Trading Strategy – Buy Yearly Index Long Call Options

This month’s strategy is buying yearly index long call options.  You can follow the link to see how this strategy has played out historically.

The idea behind this strategy is to buy an index option that’s a little more than 12 months out, so that any profits will be long term capital gains rather than short term.

Options in this strategy are purchased 5% In The Money.  This is a trade-off between purchasing the options At The Money, which has a higher time premium but doesn’t have exposure to intrinsic value loss, and buying options deeply In The Money, which have a lower time premium but do have exposure to substantial intrinsic value loss.  Options could also be purchased Out of The Money, lowering the option premium, but then profit is only made if the index rises by more than the sum of (percent Out of The Money + option premium).  I’ve found 5% In The Money to be a reasonable trade-off.

As always, I appreciate all the emails I receive to discuss stock (/ option) trading, so if there’s anything you’re interested in please send me an email:

joseph AT StockMarketMovement.com

Option Trading Strategy – Buy Yearly Index Long Call Spreads

This month’s strategy is buying yearly index long call spreads.

In the variant of this strategy that I describe, profit is made primarily off of the difference between the option premium collected on the short end, minus the option premium paid on the long end.  The way it’s structured means profit is made even in a relatively flat market.

As always, I appreciate all the emails I receive to discuss stock (/ option) trading, so if there’s anything you’re interested in please send me an email:

joseph AT StockMarketMovement.com

How To Use This Website

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I’m putting options trading strategies here, which is what I get the most requests for.  These pages include historical results of various options trading strategies.

I have analyses on generating lifetime income here.

Miscellaneous analyses that don’t below anywhere else are here.

If you use the content or ideas on this website, either on your electronic or printed material, please attribute it by including a plainly visible link back to this website.

For questions, comments, or to discuss research ideas or collaboration, you can contact me at:

joseph AT StockMarketMovement.com