- **Core Strategy**: Long position in futures (or leveraged ETFs like UPRO/TQQQ)
- **Example Procedure**:
- Sell 30 delta, 14 DTE calls
- Sell 30 delta, 7 DTE puts
- Optional: Sell 50 delta Put if market seems overbought
- **Focus**: Capitalize on market's upward drift while hedging downside risk
- **Benefit**: Removes need to actively trade on green days, focus on bear setups for hedging
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### **Case's Commentary:**
- So what is this CORE strat I'm talking about? are you a thetan at heart?
- are you tired of Buy and hold crowd mocking your ability to learn trading? if you had held full port SPY this year you'd been up more with less work.
- Introducing covered strangle longs.
- At base value you're removing green days from your day to day work, and only focus on bear setups to hedge your portfolio.
- The path of least resistance is market drift up in US indexes.
- We'll be using futures but you can use leveraged SPY / QQQ ( UPRO / TQQQ) once a week you're putting on a strangle at 0.5 standard deviation
- 30 delta 14DTE calls
- 30 delta 7DTE puts
- and one long core ( optional is sell the 50 delta put if you think we're overbrought)
- Green days are removed from being a problem
- And the strat will offer BTFD
- Step 2, let's say we tanked and got assigned 2 longs ( 1:2 leveraged now port wise) you're only selling 14DTE calls now at 30delta ( and you're still selling a 16 delta short put weekly)
- Let's say you're assigned up to 4X leverage (Think of 2022 scenario...)
- After your forth long and total portfolio is 4X long leveraged you're not looking to add more put premium instead you're looking to reduce exposure at B/E by cutting down to 1 core
- And continue selling call spreads at 30 delta 14DTE
- 30 delta will most likely be under your cost basis, that's ok
- Take the assignment and flatten is what you're looking for at that point, to start again on a Friday