To The Moon

The strategy of the week is simple: sell put

Markets will be closed on Thursday and Friday for Thanksgiving, so liquidity will be poor. From the trend of the market and the VIX bottom situation to see the current upward resistance is not small, but this week is not necessarily down. So on this line of thinking, the market is still hesitant to choose the direction, so it is a good week to sell put.

Two strategies are derived from the week's sell put, one is bearish in the afternoon, the other is to prevent the week's plunge, respectively representing the calendar spread strategy and the week's put spread strategy.

The biggest risk in this week's sell put is that the market picks its direction ahead of time, taking advantage of the World Cup and Thanksgiving to play a long catch, which is what could happen.

There is a saying that if you think a stock should not fall to a certain position, there is a high probability that the opposite will happen. So even if you expect low volatility this week, you still have to watch out for a small chance of a sharp drop. In this case, you can buy the insurance on the basis of the sell put out of the depth of the price, that is, the weekly anti-catch spread strategy, take the Dow Jones ETF$SPDR DJIA ETF(DIA)$ for example:

• sell$DIA%2020221125%20330.0%20PUT$ $DIA 20221125 330.0 PUT$ ​
• buy$DIA%2020221125%20326.0%20PUT$ $DIA 20221125 326.0 PUT$ 

Another corresponding strategy is bearish in the afternoon, the week to sell put:

• sell $DIA%2020221125%20328.0%20PUT$ $DIA 20221125 328.0 PUT$ ​
• buy $DIA%2020221216%20330.0%20PUT$ $DIA 20221216 330.0 PUT$ 

If the market still choose direction sideways this week, put short time loss will be very large, just use this calendar spread strategy to hedge.

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