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Nov 1, , 3: Hello All, I found this strategy while doing some research on covered calls: I wonder if it is worth to pursue this strategy or there is something in it that may not work in the next 10 years. What would be the right account size for it?

Non Directional Weekly Options Trading System - ETF & Emini | Udemy

Nov 7, , 5: The position may be adjusted up or down depending on the underlying stock movement. Unless you have the best access and know how to leg in to some of the strategies to reduce costs I'd bet the strategy breaks even at best.

Same with your straddle strategy, the costs will probably erode away all the profit. Thanks for replying, Anley. The liquidity is not much of a problem with QQQ options. They are quite liquid and spreads are narrow. Nov 7, , 7: Nov 7, , 9: Right now the spread on Nov ATM or near-ATM QQQ options are c. It is about 7c on Mar but those are only purchased once in 6 months or so. The transaction costs are low to negligent if we trade a minimum of 10 contracts. Nov 11, , 4: The strategy is build around the assumption that a sum of premiums received for short term options is greater than a premium for long term options.

For example, today Nov'11 59 QQQ calls were trading at. There are 20 weeks between now and March expiration.

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If we buy Mar'12 calls and keep selling weekly calls against it, we should get 0. If QQQ goes above 59 and stays there, the value of the Mar'12 call will increase thus increasing total return. If it drops, we may have to roll the whole position down. Add a similar put spread to trade from both sides.

Instead of buying Mar'12 call one may buy QQQ shares and put option for the same expiration time. Makes almost no difference. As for option broker, there are plenty that offer regular options and not just binaries.

CBOE Chicago Board Options Exchange have links to several paper trading tools. Dec 11, , 1: Hi trading Covered Calls in this market, is a good way to make some money. I am doing it for 1 year now and I must say that is the only Strategy that worked for me. Overall After I loosed some money with other strategies I start using the Covered calls only and I am slowly recovering. Even with covered calls I recommend to use low volatility stocks and to chose wisely.

I am paying a subscription to help me choosing the stocks and also learning all the tricks of the trade very happy with the subscription that I have.

If you want to find out more you can email me to achimutz yahoo. Thread Tools Show Printable Version.

Search this Thread Advanced Search. LinkBack LinkBack URL About LinkBacks. Notices Join T2W today and enjoy a great package of benefits Non directional option strategy Thanks for replying, Anley.

Non directional option strategy Quote: Non directional option strategy Right now the spread on Nov ATM or near-ATM QQQ options are c. Non directional option strategy markotrader, I don't know how binary options work. Non directional option strategy Hi trading Covered Calls in this market, is a good way to make some money. Aug 23, Feb 6, 2: Jul 18, 4: Jun 10, 8: Feb 9, 4: Currently Active Users Viewing This Thread: