hi,
does anyone here do short guts on ETFs? i tried to construct a short guts trade with $3 range away (45 put and 40 call) from the stock price of QQQQ (about $42) and found the actual premium collected if QQQQ falls within 40 to 45 is slightly above $100 only or equivalent less than 2%.

or are there any other good ETFs more worth doing short guts on? pls feel free to share. :)

thanx in advance
ky

Good evening KY,

I looked at May 41 call and 45 put for QQQQ. It was $3.50 and $2.70. A time value of $2.20.

Yes, $100 is not worth doing. Try selling into 2 months even though it is almost $100 per month. At least it is more motivating psychologically.

Sometimes we have to forget about percentage, try looking at the absolute dollar amount. Try checking on SPY, IWM, and some holders (XLF, HHH,
SMH, OIH etc).

A lot of traders like to use SPY because the absolute amount is higher. May 128 call and 138 put is $8.40 and $8. Time value=$6.40. Does it look more uplifting? The percentage point is not high, but the
amount looks appetizing.

Try looking at single stocks when you gain more confidence.

Anyone has other better safer alternative? Options on Forex, Options on Gold, Options on Oil, Options on higher yield ETF?

Thanks a lot.

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