I've spent the last year learning option structures, this is after years of learning about trading, taking courses, learning about fundamentals, how the fed works, etc… I'm up 23% ytd after today's losses.
From my experience, what's made me the most profit are bets where time was on my side. Holding shares or even contracts where you're purchasing so much time the market cannot price it accurately.
- Buying and holding the fundamental runners, market leaders. Understanding the margins of a company, EPS beats, forward guidance, PEG ratio, P/E ratio, ROCE, etc… Buying shares of the companies can get behind and hold.
- Buying LEAPs usually almost 2 years out, then selling monthlies. This is a diagonal spread, it's a poor man's covered call. I won't go into the mechanics but simply this has been extremely profitable for me with options because imo time's on my side.
- Buying OTM calendars sometimes LEAPs, then selling weeklies or monthlies. This is a horizontal spread, cheaper than the poor man's covered call usually by half the cost but same concept except now price is building the LEAP that's OTM which then will go ITM.
Whether shares or options after being around the block my most profitable trades seemingly are when time is on my side, long term plays. Shares to hold a life time or LEAPS to open spreads with and sell monthlies to nullify risk, using ITM or OTM LEAPs basically PMCC's or calendars.
With this said, I'm tired of playing earning's, looking at charts, predicting what'll happen next based off news events, seeing market get rocked by little comments, I want my own time back! Not lose time to the market, which really sucking the life out of us. Imo buying & holding longer timeframes achieves that, it's something I've forgotten and need to get back to for a simpler life. Not financial advice just years of lost time, tons of knowledge, not enough to show for it, and now retiring for longer holds and leaving this short term mess for more peaceful life.
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