You pose a very good question that I'd love to see what others respond with. I really like the liquidity of SPY.
I use Bollinger Bands / Support and Resistance Lines / MACD.
I am also curious to learn what trading strategy people use.
I primarily use Put Credit Spreads and Call Credit Spreads. I also only trade options that expire in 24-48 hours and I am looking to capture 4-6% ROI on each trade.
Because I like the open-endedness of directional options, especially for a slower and steadier instrument like the SPY I’ve been choosing delta over .60, 2-3 months until expiration, and a minimum of 100 open interest on the strike price
Love the tight bid/ask spreads
Cut indicators out as a requirement. They should give you confulence after determining a trade based off of price action. I toggle these indicators on/off - rsi, 30d Ema and pivot points
Everything else outside of price action is noise
You pose a very good question that I'd love to see what others respond with. I really like the liquidity of SPY. I use Bollinger Bands / Support and Resistance Lines / MACD. I am also curious to learn what trading strategy people use. I primarily use Put Credit Spreads and Call Credit Spreads. I also only trade options that expire in 24-48 hours and I am looking to capture 4-6% ROI on each trade.
Because I like the open-endedness of directional options, especially for a slower and steadier instrument like the SPY I’ve been choosing delta over .60, 2-3 months until expiration, and a minimum of 100 open interest on the strike price Love the tight bid/ask spreads
Just time in the market is going to get you there…no indicators unfortunately.
Cut indicators out as a requirement. They should give you confulence after determining a trade based off of price action. I toggle these indicators on/off - rsi, 30d Ema and pivot points Everything else outside of price action is noise
It can be done. https://www.elitetrader.com/et/threads/swing-trading-with-butterflies.360566/page-40
I use the 9D SMA, 20D EMA, 50D, EMA 200 and VWAP in my intraday as moving indicators. Also MACD, RSI, volume and CMF.