Possible change to Amy`s AIC - 22 (or Weirdor / Jeep / Trapdoor ...)

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O16

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Hi all, I wonder if the structure of the trade could be changed in such a way, that it would start at DTE 60 (or even higher) but still be closed after DIT 30 or TP 50%?

Thanks
 
I am sure it could be done but the theta decay will be a lot slower so I am not sure if you could get to the 50% profit target by that time especially if you have to make adjustments
 
Thanks status1, I got to agree. I just prefer to start at higher DTE, 90 to 120, but shorts further OTM.

Thanks again
 
According to TastyTrade the ideal DTE is around 45DTE and than take it off at 21 DTE or 50% profit whichever comes first
 
Firstly thanks for your kind reply. Yes, that`s true, but only for options sold ATM. The further OTM you go the faster you get your 50%. Just compare discussions around 1-1-2 trade vs. LT1-1-2 in a popular video platform.
 
That would no longer be an AIC-22 though From what I understand those trades use a naked put which would require a lot of BP which is pretty much a non starter if you try to do it on SPX Also it's much more vulnerable on a quick pull back so potentially you may have to stay in the trade a lot longer to reach 50% but it may work well in a bull market recently
 
Does Amy's AIC-22 work better on RUT or SPX, and is it very easy to make profit with very little adjusting?
 
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In the past I would have said it would not make much difference but that's when the indexes were much lower and smaller daily moves

Recently I would say it's not so easy as the indexes move a lot more and require a lot more adjusting so I have pretty much given up on trading on indexes and I don't have time to seat in front of the computer all day or watch it gap up or down and try to adjust afterword and hope that it does not reverse and have to adjust again
 
status1 said:
In the past I would have said it would not make much difference but that's when the indexes were much lower and smaller daily moves

Recently I would say it's not so easy as the indexes move a lot more and require a lot more adjusting so I have pretty much given up on trading on indexes and I don't have time to seat in front of the computer all day or watch it gap up or down and try to adjust afterword and hope that it does not reverse and have to adjust again
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Just putting the RUT next the the SPX .... I don't know ... it looks like the RUT jumps a lot more than it used to, and maybe the SPX is less volatile than the RUT? Never traded the RUT before. It looks like Amy just traded the RUT in the past, and I'm guessing many others on this forum also trade the RUT and SPX, that's why I thought I'd ask :) Actually, I've been watching all through all the old AIC/Jeep videos over the past 10+ years, and it's always RUT, and the system rarely changes, and RUT definitely looks less volatile in their old charts
 
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It works for a while but than something happens and it's either shoots up or gaps down and you have to be ready and deal with the consequences and hope you don't get whipsawed Just because AMY and other have traded it in the past doesn't mean it's easy or that RUT is less volatile than SPX

Also the higher the index goes the more daily swings it can have and after a while you don't get paid for the extra potential daily volatility only after the event happened and than it backs down
 
status1 said:
It works for a while but than something happens and it's either shoots up or gaps down and you have to be ready and deal with the consequences and hope you don't get whipsawed Just because AMY and other have traded it in the past doesn't mean it's easy or that RUT is less volatile than SPX

Also the higher the index goes the more daily swings it can have and after a while you don't get paid for the extra potential daily volatility only after the event happened and than it backs down
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Thankyou. I've mainly been doing hedged OTM flys and OTM calendars; long straddles and strangles for the past 4 years, and only recently looking at the ATM short vol trades. "Easy" was just a relative word. ... I guess easier than A14 which needs to be monitored more often. My recent short vol trades have been a basket of 2 week ICs in etf's, but the liquidity in the wings often disappears, and I am left holding it to expiration as I can't get out, and I can only hedge with stock or options ... that's relatively "hard" and I'm not going through that again
 
status1 said:
I am sure it could be done but the theta decay will be a lot slower ai face generator so I am not sure if you could get to the 50% profit target by that time especially if you have to make adjustments here
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You're right—theta decay, or time decay, can significantly affect the profitability of options trades.
 
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Hi all, as you might be aware, I`m a follower of Amy`s trading since 2015 including a couple of her alert services.

I decided to start a trade ala AIC22-Simple on July 5th and planned to close it no later than 35 days - so the recommended LONG PUT low delta was a shorter duration than the rest of the bunch -- to save money.

As a European I trade at IB Ireland, which has the side effect of providing Portfolio Margin even for small account. So the margin requirement of this trade was only ca 40% of what Amy plans at RegT account.

The trade was opened at July 5th -HALF SIZE- and gave me an initial net credit, but due to 2 adjustments and the full size of the required hedge put I ended up at a debit of 220USD and just below 4k as margin requirement --- which remained stable til the today. Wonderful.

Today, August 5th, I closed the trade for a profit of almost 4500USD, more than 100% on margin! The hedge put had gone from 3.40 to more than 70.00!!

I should stress, that I didn`t follow the trade closely, I wasn`t too interested, just set up, first 2 adjustments and that was it. No moving of spreads, resizing, alerts etc.... I was lazy and reminded of a former episode: AIC-Funds ....

So, thanks Amy!
 
You were lucky with the recent sell off on this trade but I would not count on that happening too frequently
 
Recently I have moved away from trading the indexes it's too volatile and don't have time to watch the trade all the time sure you can do longer term and not watch it as often but even then you have days like yesterday and you have to make a decision Do you adjust and watch it bounce back and adjust again or don't do anything and hope it doesn't go lower in a few days

I am into the YieldMax etf these days I can start as a cash secured put and if I get assigned it has a good dividend so I don't have to watch it all the time Sometimes after I get assigned if it goes up a lot I can sell it and get more than the dividend then I sell another cash secured put on the same one or a different one They have relatively low price so it's good for smallish accounts
 
status1 said:
Recently I have moved away from trading the indexes it's too volatile and don't have time to watch the trade all the time sure you can do longer term and not watch it as often but even then you have days like yesterday and you have to make a decision Do you adjust and watch it bounce back and adjust again or don't do anything and hope it doesn't go lower in a few days

I am into the YieldMax etf these days I can start as a cash secured put and if I get assigned it has a good dividend so I don't have to watch it all the time Sometimes after I get assigned if it goes up a lot I can sell it and get more than the dividend then I sell another cash secured put on the same one or a different one They have relatively low price so it's good for smallish accounts
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So I believe the ETF consists of investing in "monthly covered calls on stocks", and you sell cash secured puts on that? .... lots of moving parts :)
 
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