SPY is my largest holding. I don't do everything in individual tickers. I hold both equity and options in SPY. Obviously SPY has treated everyone very well this year. It is another Diagonal options trade with the long at a delta of about 60, the shorts at a delta of 34. I also sell calls again the equity as a normal covered call trade.

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Do you have any cut loss rules is the trade goes against you?

Yes, first, if the trade is going against me slowly I lower the shorts to a calendar, then a bear call spread. Since I have a lot of time in the long, the IV rises typically as the ticker falls helping give me more time to consider the cause.

If it is transitory, like a 5% market pull-back, and I have more than 60 days in the long, I just adjust the shorts down.

If the ticker falls to performing like the market, then I let it die a slow death and scrape the theta.

If the ticker reverses to much worse than the market, I pull out. The ticker has to be better than at least the SPY or ACWI (whichever is higher) T3M or TTM. If it drops below both, I sell

In a bear market, I go to cash in my equity holdings, and do bear diagonals, using -60 and -30 as mong and short deltas with Puts.

V is an example of something I'm slowly killing, and I may do the same with AMZN, though today sparked some interest. I'm watching my AMD and NVDA for the same reasons.

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Thanks for sharing. Re: lower the shorts to a calendar or bear call spread, are you concerned that if the market reverse back up quickly, you could lose big? Perhaps you could close the trade and take profit much sooner than planned, say when it hits the shorts strike? Would love to hear when you decide to take profit. I still have trouble manage calendars and diagonals

Sometimes I lose on the short. I certainly don't always win. I lower the shorts slowly, and I've had reversals that make me lose on the short. When that happens the long helps.

I find calendars much harder to manage than diagonals. A quick move overtakes and you get delta slammed.

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