137: SPY Call Buying Strategy Research(53% Win Rate, 2:1 Risk Reward)
In this episode, we explore a SPY call-buying strategy with a 53% win rate and a 2:1 risk-reward ratio. This strategy, built on data and technical analysis, is designed for consistent execution and measurable results.
The audio for this show is from a recent YouTube video.
Here's the link if you interested in the video version: https://youtu.be/eTLqr8TWstA
Blog Post: https://www.alphacrunching.com/blog/buying-spy-call-options
SPY Call Buying Video Course: https://www.stockmarketoptionstrading.net/spaces/17635818
Key Strategy Highlights:
- Core Strategy:
- Buy SPY calls (Delta 70) on Monday at 3:30 PM.
- Use a 50% stop loss and a 100% profit target for the 2:1 risk-reward ratio.
- The strategy has shown an average winner of $600 and an average loser of $340.
- Technical Conditions:
- SPY must be above its 20-day SMA, indicating a short-term uptrend.
- RSI must be below 70 to avoid overbought conditions.
- Weekly Triumph Rate (WTR):
- Check WTR data on AlphaCrunching.com before the trading week.
- Only trade if Monday’s WTR is above 50% or improving from the previous week.
- WTR provides insights into the probability of SPY closing higher the following week.
- Pre-Market Planning:
- WTR data is available on Sunday, allowing for early decision-making.
- Trade ideas are updated weekly for subscribers on Alpha Crunching.
For a detailed breakdown, including variations on this strategy, check the blog post and mini video course linked below.
Blog Post: https://www.alphacrunching.com/blog/buying-spy-call-options
YouTube Video: https://youtu.be/eTLqr8TWstA