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The Trade Busters

31 - Introducing the Bomb Shelter

Sep 25, 2021
Exploring updated 45+ DTE income strategy with increased DTE to 120 days and selling a 15 Delta short put. Introducing bomb shelter add-on with two long puts for each short put sold. New Black Swan Hedge Strategy discussed for portfolio margin efficiency.
17:02

Podcast summary created with Snipd AI

Quick takeaways

  • Income strategy now uses 15 Delta short put for varied entry frequencies.
  • Bomb Shelter strategy provides security against extreme market events with long puts.

Deep dives

New Income Strategy Mechanics: 120 DTE, 15 Delta Short Put

The podcast introduces updated mechanics for the income strategy, shifting from 60 DTE to 120 DTE. Sellers now use a 15 Delta short put instead of a 5 Delta, allowing for varied entry frequencies based on account size and credit targets. The exit mechanic remains with a bracket order set at a 50% profit target or 200% stop loss, providing concentrated credits with fewer contracts.

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