Hey guys I wanted to know if anyone has experience trading weekly OTM strikes. Like at the start of the week of the week, buying and selling OTM for $5-$10 in hopes to make $90-$95 by the end of the week. I know there is a chance you still won’t win but I guess its better to lose less money slowly, than lose more money faster. I know seems very newbie-ish.lol but sometimes the simple stuff seems to work better. Any thoughts???
Weekly Strategy For Part- Time Income?
ronin50
#2
If you used expected moves on your selected market you might be able to put something together. I wouldn’t hope to expire above or below your strike at the end of the week. You will find the markets like to oscillate inside a given range and open to close they tend to expire within that range very often. You might be better off buying and selling strikes in the $5 to $10 dollar range and then setting profit targets to buy or sell back when the market touches your strike. for example a $5 dollar buy might have a sell back take profit at $43 and your $95 dollar short would have a buy back take profit at $57. 43-5= 38 (38-5 risk on other side and -2.7 in fees) = $30.30 in total profit for the week if you hit only one side.
You could use deviation levels or magnet volume prices to target levels. Expected ranges in the toolkits…
Why not do this on a daily basis and multiply it 5? I would demo it for about a month and see how you do. If it works in demo, then it can work with real money.
Just my $0.02
darrell
#3
Why would you wait a week to make what you can make in a day, a couple hours, an hour, or 15 minutes.
The longer till expiration the harder it is to predict the market.
Demo trade and lose nothing. Once you have it, then trade live.