MSFT spread

got spread expiring in 50+ days time

strike price at $395 

2 trades today

 entered 2 spread trades today

all trades expiring in 50+ days

better the next earnings

all are below the next support zone

and strike price is quite far

for NFLX, it is interesting. Initially was looking at $595. it turns out $590 strike price had better returns

GOOGL spread

 

this time I went for 56 days

instead of around 45 days

the strike price is better. for 56 days, the strike is $155. for 45 days, it is $160.

and also longer contract does not seem to matter much.

because usually I can only trade spreads at the start of earnings season

when companies have reported

when closer to the next earnings season, there are less opportunity

as I need longer contracts to get better strike price.

so, getting a better strike price seems better than having a shorter contract period

spread lessons

some heavy losses

learned 2 things there were different from adam khoos method :

for stocks the spiked up strongly after a news, that was in a bullish trend, i used spread to bet that they will no longer rise anymore. it does not seem to be a good strategy

i bet spreads with too little days days to expiry. it should be closer to 45 days. now i know for spreads, it is more suitable to be used within 45 days after earnings calls. after that, it might be too close to the next earnings call. longer contracts are essential, as it has a bigger distance between the current price and strike price.

TSLA spread

 made a $300 bet that TSLA rally should run out of steam

should not go to the price of $260

earnings date is on 23 Jul, so looked for earlier expiry of 19 Jul

Also did not get delta of 0.3 and below

as I felt $260 strike price is good

and was also unable to get 1 to 4 win loss ratio if I go for lower delta

BA spread

 

entered a spread to bet it will not go beyond $195

only put in $100 bet instead of $300

actually I should not enter it, as the delta was 3.4

I should wait for delta of 3 and below, with win loss ratio of 1 to 4.

but since it is $100, I will just use it as a lesson for the future