Episode 137

full
Published on:

16th Jan 2025

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:

  1. 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.
  1. Technical Conditions:
  • SPY must be above its 20-day SMA, indicating a short-term uptrend.
  • RSI must be below 70 to avoid overbought conditions.
  1. 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.
  1. 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

Listen for free

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About the Podcast

Stock Market Options Trading
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About your host

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Eric O'Rourke