JacobH

@cwelsh Thank you for a very thorough and quick answer to my questions.... In regard to VIX, it has beta almost 1 as it is the volatility of the SP500...

Hi @Kim and @cwelsh I just (re)enrolled in Anchor and find the new system with synthetic stock interesting. I have been looking at all the links provided in the "Welcome" but have a few questions I havent been able to find answers to. a) When to roll the core synthetics (calls and puts) if ever? b) The explanation of the strategy states to buy puts ATM - 5%, but other state ATM. Which is it? c) Am I correct that the puts we short are delta 55, close to ATM? Isnt that "risky" in regard to the current volatility? d) Why 365 days options and not even longer 730 days? Liquidity? e) When purchasing the options, where to place our bid: middle of bid/offer or? f) Several posts warn about opening Anchor now due to high IV, but when I look at current pricing it seems that weekly puts bring in 1/7 of the cost of the 365 day - so high volatility only need to be present for a few more months g) The system aims at 75% leverage. What risks are the with more leverage (the system makes money in all market situations - except flat) h) Why do we use SPY and not QQQ i) I have seen other systems that use VIX as a hedge. VIX tends to move average 16% on a 3% down stock move, which would give even more bang for the buck protection wise. Have VIX calls been considered as a hedge instead of PUT options?

@Yowster - I agree and we have had a short dialogue about these trades earlier... I dont mind they are in the unofficial trades ... as long as you share your insightson the forum ;-)

This is great news... @Yowster is a star like you Kim! Any chance we could se some ultra short term trade ideas holding calendars through earnings? (buying calendar day before earnings, closing day after) for low vol. earnings moves?

Hi Maji, Thanks for feedback. I get that it is a paid service, but thought it was primarily to get timely notifications of specific trades... not the strategy itself. I didnt know there was a free trial - will check it out!

I have been considering anchor trades and am also very interested to learn more about the mechanics of the Anchor trades. Isnt it "just" long stock (or ETF) and a collar where - the PUT is LEAPs or similar (that are rolled up if needed), and - Covered Calls short(er) term - to over time pay for the puts - something like 2 SD out of the money?