Welcome to the Traders Laboratory.

Options Trading Laboratory Options traders discuss all your long and short term options trading here

Old 09-21-2014, 01:59 PM   #1

Join Date: Sep 2014
Posts: 1
Ignore this user

Thanks: 0
Thanked 0 Times in 0 Posts

Option Trading Strategies

Hello Everyone,

For research purposes, I am looking for any option strategy, for a bullish/bearish/fluctuating market, that produces up to 100% ROI at some probability (I'll do the calculation myself) but also has limited loss potential of up to 50% of the sum invested.

Does anyone know of such a strategy?

The closest thing I've found was the long call spread strategy, but here the profit potential equals the loss potential.

I would appreciate any help

Netgo is offline  
Reply With Quote
Old 03-22-2015, 05:24 PM   #2

Join Date: Mar 2015
Posts: 2
Ignore this user

Thanks: 0
Thanked 0 Times in 0 Posts

Re: Option Trading Strategies


I like to buy front month, deep ITM long calls on large, liquid ETFs. If you use more than 1 ETF, the ETFs you choose are not too correlated, and you think of the group of them as a basket, it is very unlikely that you will lose 100%. I usually trade a group of 3 of them, based on momentum characteristics. My maximum profit in a month has been 60% and my maximum loss has been 60%. My average per month is 8% to 9%. On individual options, I have made as much as 120% and as little as -85%. I don't use any stops. I buy them 6 wk out and roll them or choose new ones 2 wk out. You can use just about any momentum system to do this: read David Vomund, Mebane Faber, Thomas Carr, Leslie Masonson, Ploutos on Seeking Alpha, or CXO Advisory. You need the chops to hang onto them through some wild rides, so it's best to stay small.

I'm not sure that one can design what you are seeking. If you add "insurance" to this type of trade to limit your loss, you are also limiting your gains. I have been speaking of directional trades. As for volatility trades, I'm hard pressed to come up with something that will fulfill your requirements, but maybe I'm just not thinking of it right now.
drcha is offline  
Reply With Quote


limited profit, limited risk, options

Thread Tools
Display Modes Help Others By Rating This Thread
Help Others By Rating This Thread:

Similar Threads
Thread Thread Starter Forum Replies Last Post
Option Strategies for the Month of Feb Larry1234 Options Trading Laboratory 4 06-13-2013 11:43 AM
Option Strategies for S&P 500 for Jan Larry1234 Options Trading Laboratory 2 01-24-2013 08:47 AM
Simple Forex Trading Strategies - The Key To Profitable Trading Nial Fuller Trading 3 10-26-2010 01:12 AM
Trading Strategies markl67 E-mini Futures Trading Laboratory 5 07-10-2009 10:01 AM
Option Strategies james_gsx Options Trading Laboratory 5 10-30-2007 04:04 PM

All times are GMT -4. The time now is 04:00 AM.
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.
CS to VB integration by DeskLancer
2006-2011 Traders Laboratory, All Rights Reserved.