Tuesday, April 4th, 2017

Is selling stradle option on SPDR exchange traded fund(SPY) a good strategy?

I am an individual investor who is currently using Exchange Traded Funds options for growing capital. It sells both put and call options on SPY (S & P500 index), near the current market price. I also buy protective puts. I generally sold two months options to maximize the return on my investment. Can you advise whether it is a good strategy and safe?

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3 Responses to “Is selling stradle option on SPDR exchange traded fund(SPY) a good strategy?”
  1. anonymous says:

    Sounds to me like you are a little more advanced than the teenagers on this site! I can not give you advice … can you give me some? Why not stocks? I am into [GW] Grey Wolf and [GE] General Electric. What are your thoughts?

  2. marketwizard says:

    It’s a safe strategy now to use since market is sideways. You should trade futures options for S&P500 instead becuase the premium for SPDR is too little. Good luck!

  3. gp1261 says:

    What direction are you expecting the market to go? Unless you are expecting the market to be range bound, it’s the absolute worst strategy you could possibly use. You leave yourself with unlimited risk to the upside, and unlimited risk to the downside, and your profit is limited to your premium received minus commissions, so unless you expect the market to be flat, it’s a losing proposition either way the market goes. A very risky strategy with little reward. This is like skydiving without a parachute.

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