I'm experimenting with a strategy of selling weekly strangles on 15-16 different blue chip stocks, with very liquid options. All of the companies I'm using trade within the SP500.
I'm selling naked calls and puts around 1 standard deviation away from the current price, expiring in one week, with stop losses in place at 100% on any trade. For example, if I sold a put for $30 that goes against me badly, when the position goes -100%, I close the trade for a loss of $30.
Since I'm playing the odds more than anything else, would it be more advantageous to ONLY play the SPY ticker with this same strategy? Since all my companies are in the SPY anyway, I'm wondering if I would save on commissions and be wiser to only use this strategy on the SPY ticker instead of 16ish different companies within the SPY.
Does anyone have experience with a similar strategy, or any words of wisdom/suggestions? I appreciate any input. I'm always looking to learn and expand.
Submitted February 10, 2019 at 03:19AM by ThetaHunter http://bit.ly/2UO7jf1
