About this template
Run in paper. You have been informed.
(The bot that is currently shared in the community is version 1 irrespective of the revision)
(Search string (Latest revision of the version 2): PIxWSKKH5gVyh8Iw)
====================================================================
====================================================================
Main focus:
- Sell puts while buying cheap hedge
- Damage control (e.g. loss on shorts, loss due to market-maker moves)
- Utilize Bot Inputs to potentially experiment with other tickers (feel free to adapt and do not forget to share)
Approach:
- Sell OTM delta put spread and buy OTM delta puts
- Liquid instruments only (manually tested with 10s of liquid tickers including ETFs)
- Hard profit percentages (e.g. 30 %) is just a personal observation that I consider safe. Due to practical reasons, there is no specific profit percent that can always work for every instrument
Intended outcomes (position recycled as per original thesis):
- Net profit: Short put covers for both long puts
- Net profit: Both long puts can together outpace the short puts
Possible outcomes:
- Intended outcomes
- Net loss: Losses are cut short and the overall trade is recycled (at same strike in an attempt to collect credit)
====================================================================
====================================================================
Let's see how it goes!