Wednesday, July 10, 2024

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.

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