So, if you follow my posts on stocksandshit, youll see my charts and dd forecasted a lot of the price moves and timings for the market. Hopefully it helps someone.
not going to go deep into my trading/investing philosophy, so ill keep it short – give yourself as much edge as possible through controlling your position size and entry points. You should be able to stay solvent longer than the market is irrational.
What you should do in this market:Margin accounts
My trades im going in on now are OTM puts on the spy. I use leaps 6 months to a year and aim for a specific %. premium is then used either to buy puts /calls/ shares or just to hold as cash.ideally you should have a net credit.
Why sell puts? IV is higher. the OTM calls, will obviously be cheaper. With this trade, you create an asymmetrical payout.
Your downside risk is assignment of shares.However, because these are already OTM its a further buffer..plus the goal is to be long the market anyway, so you should be buying shares.
using this trade in a margin account requires only a portion of the buying power be taken up. However, this is where you need to be careful and manage your risk.
Anticipate a 50-60% drawdown from peak to wherever, but also come up with a bull case of where you think the market will be by contract expiration.
good luck
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