Was beating QQQ consistently since August last year, but then we had a violent crash and then 13 consecutive green days. Got assigned on my short legs, which I had to sell as I didn't have that much cash. Then, sold some OTM calls during beginning of recovery. Now OTM calls are in money and I have to sell OTM puts as hedge. Now, I am 6% below QQQ for my performance. If the market crashes again (and rises again), the difference will be bigger.
This ✓ shaped recovery makes me realizing that the whole point of wall street firms and hedge funds are moving stock prices from A to B. It could be to C or back to A later, but they will earn the money both ways.
This brings to me that delta-neutral OTM strangles could be the best buy side strategy for someone who doesn't have time to analyze stock tickers. Open 45 to 60 DTE OTM strangles for a ticker when IV rank is below 30%, set a limit (e.g., 30%) and then wait. We can even scalp the strangles if the stock moves just a little.
Another good thing is OTM strangles kind of neutralize my OTM short strangles.
What is the take of this subreddit on this? The rule of thumb is not to be greedy and stick with exit plan.
I sold OTM strangles and get bamboozled past one month, now buying OTM strangles instead
byu/Odd-Block-2998 inoptions
Posted by Odd-Block-2998