Ask me Anything

doctorpot1 : what do you think of this strategy. https://www.moomoo.com/community/feed/107452442279942?data_ticket=5b3500b278c1b7aa4a176e85285988a1

OFFICER TRUTH OP doctorpot1 : Yeah that’s your basic wheel/theta gang Strategies that Focus in current income and are generally more risk mitigated strategies thEn say, buying a Naked call option.

doctorpot1 OFFICER TRUTH OP : any other strategies to increase payout and/or lower risk? After accounting for fees?

OFFICER TRUTH OP doctorpot1 : I’ve used theM And they Can be effective with the right amount of volatility or choppy trading. LEAPS I’m staying away from Until I understand what rate atmosphere were looking at over the next few years which has been changing QuitE a bit. But, considering we are likely entering a bear market cycle (Although It will be short lived)

OFFICER TRUTH OP doctorpot1 : Traditional hedging
Short a stock and then buy a call option and then adding a delta hedge or gamma hedge in the overall short of the stock and delta provided by the option. Simply put, delta hedging looks for a dollar for dollar or point to point move in either direction of your opposite position.

doctorpot1 OFFICER TRUTH OP : I'm assuming you meant long stock and buy put for my case? cause I'm bullish. I might be thinking wrongly but won't that be a worse strategy then theta gang? cause you have to realised loss in a bear and sideway scenario but you can huat big big on a bull scenario. but for the tetha strategy you win in a bull and side way scenario and you can protect against bear scenario using time value?

doctorpot1 OFFICER TRUTH OP : yea if the bear cycle is long lived then I can see that I have to roll the put indefinitely hahahahahha

OFFICER TRUTH OP doctorpot1 : Yessssir! Great question. Theta gang/the wheel are doing well right now. You can also catch some nice gains running vertical spreads as well depending on your sentiMent