Scottsdale tastytrade Meetup March 2015

1. Weekly vs. Monthly
Strangles

2. The Setup
• May 2011 - Dec 2014 (AAPL, AMZN, GOOG, GS, IBM, SLV, SPY)
• First trading day of the month sell 1 SD strangle closet to 45 DTE
• First day of the week sell 1 SD strangle closest to 5 DTE
• Close trade at 50% profit, 2X loss, expiration whichever comes first

7. Weekly Monthly Weekly > 50 Monthly > 50
Total Profit $22,544 $18,989 $11,227 $2,141
Average Days Held 3 24 3 21
Total # Trades 832 294 184 50
Avg Profit/Trade $27.10 $64.59 $61.02 $42.83
% Held Expiration 27.4% 4.08% 29.9% 6%
% Held Exp Profitable 61.8% 41.7% 63.6% 66.7%
% All Profitable 82.1% 86.1% 82.1% 86%
% Exit 50% 65.1% 84.4% 63% 82%
% Exit 2X 7.45% 11.6% 7.07% 12%
Max Loss -$1,416 -$2,836 -$1,416 -$2,456

8. 1. Market Measures: 8-19-13 “Weekly vs. Monthly"
Slides: https://s3.amazonaws.com/tastytradepublicmedia/show/
9/episode/5658/slide_decks/en/
MM081913_Weekly_v_Monthly_.pdf
• Prefer duration to give time to be right
• Theta decay decreases as expiration approaches (OTM)

9. 2. Market Measures: 9-5-14 “Weekly Strangles"
Slides: https://s3.amazonaws.com/tastytradepublicmedia/show/
9/episode/13623/slide_decks/en/
MM090514Weekly_Strategies_REV1.pdf
• Pros: Binary events, Increased occurrences, calendars
• Cons: Gamma Risk, Not scalable, Liquidity, Adjustment
options

10. 3. Back to Cool: 6-4-14 “Weekly Strangles or Monthly
Strangles"
Video: https://www.tastytrade.com/tt/shows/wdis-back-to-cool/
episodes/weekly-strangles-or-monthly-strangles-06-04-2014?
locale=en-US
• Discussion format is different and good for beginning traders
• Looking for opportunity
• Can allow for trades to close prior to earnings dates

11. Questions?

12. DISCLAIMER:
The purpose of this material is for education only. You must consider your
own situation and risk tolerance prior to entering into any investment. You
are assuming the entire risk of any and all trades placed in the stock market.
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