After a long break from trading spreads on QQQ & SPY I've started trading spreads near the money on equities like NFLX, V, TSLA, and NVDA. Generally I like to use a width of 5 strikes in my spreads and about 75% of the time I'll use debit call spreads rather than a credit call spreads. I also like to be about 15 days to expiration.
My objective (wouldn't call it a strategy) is to scalp the spreads for like 25 cents on highly volatile stocks. This is mostly for fun and to procrastinate working but I'd like to make enough to fund to fund a couple lattes and my lunch each day.
One thing I've noticed is that the value of the spreads doesn't seem to move much even when the underlying stock is moving. I'm chalking this up to small differences in delta. For example my delta spread might be only +/- 0.3.
My question is if I'd be better off defining the width of the spread by the delta. For example making sure there is a difference of say 0.12 between the long & short legs.
Does anyone have insight on this and if there is an optimal width of the deltas.
Any help is appreciated.
Posted by Stonks303