An investor emailed recently regarding some questions on the Apple Stock biweekly Put Selling strategy. He has been selling the mini options and doing well but was wondering about size limits, handling crashes or a bear market and spreading the trades across more than one account. Let’s review his question and then consider some answers. (I have edited some of his question)
I have been trading the apple biweekly Put Selling strategy with mini options and doing well. I really want to go further with this strategy maybe trading 3 different accounts using the apple biweekly Put Selling strategy.
1. I plan to trade a second account with 180,000 allocated to apple biweekly Put Selling strategy. Should I do 2 puts every time, and use the left over cash for rescue.
2. I know crashes and bear market are rare, how should I handle crashes/ bear market with apple biweekly Put Selling strategy? Do you just use 1 put when apple cross below 200 ma (moving average)?
3: If I trade the strategy over 3 different accounts, will it be manageable? One account with have 80,000 using the mini options, the second 180,000 and the third 400,000. Is this too much too handle?
4. If I have to roll down my naked puts are roll downs time critical, or can I just roll down any time during the day it hits the strike.
Apple Stock Biweekly Put Selling Strategy Questions
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