SPX long Dated BWB
Use SPX put BWB.
Enter 65-75 DTE.
Exit 15-40 DTE unless forced out earlier.
Enter on a flat or down day where volatility is higher.
Place upper long within 5 points of the market.
Place shorts 40 points and lower longs 90 points below upper longs.
Ideal entry price is below 100 but can go up to 125.
Try to leave the position alone for at least 30 days unless SPX has a large move.
If SPX is more than 30 points above upper longs then start rolling them down one-by-one to raise the expiration line above zero.
If SPX moves to the lower 1/3 of the tent early in the trade then either exit or buy debit spreads to protect the position. The long of the spread should be at the B/E point of the expiration graph and the short should be 20-25 points lower.
If SPX moves down later in the trade then exit.
This originally appeared at http://forums.capitaldiscussions.com/threads/dan-harveys-bwb-road-trip-strategy.348/
Hello,
The trade calls for short to be 40 points lower than upper long and then the other long is 50 points below short. Your trade’s short is 50 points below upper long and then the other long is 60 points under short.
What is your reasoning of making it wider?
Thanks
Which trade are you looking at? I have an SPX Rhino trade thats 60/50 and a “Road Trip Trade” that’s 50/40
Apologies, the rhino, I trade it on the RUT and its 40/50 was just curious if on SPX it’s better to do 50/60?
Thanks
Hi Al,
Since SPX is larger, I use larger wings. The trading group I am part of calls this the “White Rhino” variant.
What trading group is that? Any info you can share regarding the “White Rhino”?
Thx,
MM
Hi
Thanks for your blog… I’m learning a lot with your comments.
One question: where can I get more info about Dan strategy? It looks quite interesting but I don´t have access to the link
I think you may have to become a member over at Capital Discussions. There’s a lot of good resources and it’s well worth it.
We’ve also got a Skype group going (Index Income Trading)
Sorry for the delay response, I’ve been traveling
Interesting … how can one join your skype group?
It’s called Index Income Trading on skype. You can join or you can post your skype ID and I’ll add you
I started it with another gentleman about 4 months ago (it was just 2 of us trading the Rhino). It’s now 140 members and Ron Bertino has become the sort of spokesperson and leader of the group.
I think one can not search a skype group.
From http://community.skype.com/t5/Mac-archive/search-and-join-a-group/td-p/1726689
“Though you can be part of a private group (created by you, or a contact), Skype doesn’t have any public groups you can search for/join. ”
Is there any other way to join Index Income Trading?
https://join.skype.com/B3loLQWOIrnn
Try that
Hello, would also be interested in joining the skype group. Am a member as well at Capital Discussions, and am ready to dip my toe in, but would appreciate advice from others who have been there. Tried the Skype link above, but says I’m not allowed to join.
Would I need to be invited?
Thanks in advance.
Jim
https://join.skype.com/z4l4k9VfjHyN
Try that.
Worked! Thanks again.