Welcome to SteadyYields

[falkor 26]

My understanding is that the payoff graphs are identical for credit and debit spreads, with the only difference being the payoff timing (whether credit received up front or over the life of the trade), assuming IV doesn't change. Credit spreads are short vol (-ve vega), so work well if you don't expect IV to increase too much. In contrast debit spreads are long vol and work better if you expect IV to go up (eg sudden move). @Kim @SBatch am I on the right track?

[Kim 7,499]

19 minutes ago, falkor said:

My understanding is that the payoff graphs are identical for credit and debit spreads, with the only difference being the payoff timing (whether credit received up front or over the life of the trade), assuming IV doesn't change. Credit spreads are short vol (-ve vega), so work well if you don't expect IV to increase too much. In contrast debit spreads are long vol and work better if you expect IV to go up (eg sudden move). @Kim @SBatch am I on the right track?

It depends on the strikes. If using they same strikes, they would have the same (or very similar) Greeks. Different strikes would have different effect on the Greeks. @Yowster wrote an article recently how IV impacts different trades - https://steadyoptions.com/articles/the-impact-of-implied-volatility-iv-on-popular-options-trades-r805/

[ItsNoahTime 3]

On 4/21/2024 at 6:40 AM, Bullfighter said:

I find SY way less involved, as you don't need to focus in a plethora of securities. Also, you execute less trades overall. The profit percent per trade is higher, so timeliness of execution is less of a factor. Sometimes you can get better pricing, but it's a coin flip. Still, you shouldn't dilly dally and place the order sooner rather than later, as the thesis can play out without you.

I feel the same way about this strategy.  SteadyOptions is great, but the SteadyYields trades have been more profitable and the fills happen faster.  The only advantage of SteadyOptions is the proven longevity.  I have probably mid-level knowledge on options trading and SteadyYield's spreads are easier to understand and somewhat replicate if there's liquidity issues. 

I am also pretty excited about the fund/s.  Seeing how awesome SteadyYields has done has alleviated some of my anxieties about the fund's performance (it's my first fund).  The convenience and discipline of the fund manager, while also boasting market beating returns, is literally exactly what I've been looking for.  There's syndicate funds, but usually I don't see them making as much as the potential CAGR of these.  Either way, I'm pretty stoked about finding this website as it's always been "steady."  

[Drizzle_268 1]

Do you preform any technical analysis when you’re looking at the two securities?

[SBatch 2,309]

6 hours ago, Drizzle_268 said:

Do you preform any technical analysis when you’re looking at the two securities?

I pay attention to trend lines and ranges on the 30 year bond.

[V_NAM 6]

If we were to apply the 'Efficient market' theory to this strategy; as more and more people trade this strategy, the advantage afforded by this correlation of CL with TLT should slowly reduce. But it is interesting to note that this trend existed for past 20 years! Wonder what makes it tick. I read some of the links posted in the thread, but I am not finding them very convincing. Of course, I wish the lagging correlation continues to exist!!

[SBatch 2,309]

11 minutes ago, VNambula said:

If we were to apply the 'Efficient market' theory to this strategy; as more and more people trade this strategy, the advantage afforded by this correlation of CL with TLT should slowly reduce. But it is interesting to note that this trend existed for past 20 years! Wonder what makes it tick. I read some of the links posted in the thread, but I am not finding them very convincing. Of course, I wish the lagging correlation continues to exist!!

We will not be affecting the largest market in the world (Treasury), I assure you. Petrodollar system is a very convincing reason.

[mrputsncalls 11]

We also have to be sceptical about the efficient market hypothesis. "Hypothesis" btw, not a theory. 

The way I reject the hypothesis for myself is I look at the list of the most successful hedge fund managers, hedge funds in general, successful traders from books on the biographies of those. The list is long. None of these people's success would have been possible if the hypothesis was true. 

[TrustyJules 2,982]

7 hours ago, SBatch said:

We will not be affecting the largest market in the world (Treasury), I assure you. Petrodollar system is a very convincing reason.

LOL in the proverbial words: "When I die I want to come back as the bond market because then you can intimidate anybody."

[SBatch 2,309]

The model portfolio was up 40.1% on total account for the month of April.

[Sunshine25 15]

Thats a good looking model!

[JATE 0]

Good afternoon. I am subscribed to the Steady Options Service, I understand that we have free access to SteadyYields until the end of this month. Where can I find the trades?

[InvestTrader 21]

12 minutes ago, JATE said:

Good afternoon. I am subscribed to the Steady Options Service, I understand that we have free access to SteadyYields until the end of this month. Where can I find the trades?

You have there the discussions and the trades ... The trades that are open are pinned at the top of the Trades forum

https://steadyoptions.com/forums/forum/62-steadyyields-sy-forums/