I opened 2 lot(s)
$SPY 20240830 561.0 CALL$ ,I opened 2 lot(s)
$SPY 20240830 561.0 CALL$ ,. I am adopting a new strategy called Reverse Ratio Call Spread Writing or Backspread. This strategy involves relatively low and limited risk while offering potential unlimited upside. This approach differs from my previous trading styles, which involved constructing spreads or simply selling cash-secured puts. The strategy consists of buying 2 out-of-the-money (OTM) calls and selling 1 at-the-money (ATM) or in-the-money (ITM) call. By doing this, you receive a net credit, and the combined delta of the 2 OTM calls is higher than the delta of the 1 ATM/ITM call. If the price falls below the strike price, all options will expire worthless, allowing you to keep the net credit. If the price surges significantly, higher profits will be realized from the 2 OTM calls due to their higher delta. I am still learning and would appreciate feedback from any options gurus.
Modified in.08-01
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so when will you lose money?…