Recently graduated from a Reg-T to a PM account. What are some differences, warning, and other advice y’all have when it comes to selling options under this new system? Is it pretty much the same (more leverage but need to watch for Cap Req)?
Some details:
\\\\- typically I do OTM CSPs on the index (SPY or QQQ, occasionally IWM). Not opposed to moving into other tickers/individual stocks, but not preferable. May get into selling OTM calls too,but haven’t researched/experimented enough yet to pull the trigger.
\\\\- Recently got into long dated straddle(or strip/strap if bearish/bullish bias) as a backbone, with shorter dated puts and calls being sold. Would adjust the backbone as the market moves, as well as the sold legs depending on market vol & direction. From what I understand, this reduces the Cap Req for PM? I think there’s a YT vid out there describing it. Did it small scale on IWM and worked out well under Reg-T
\\\\- Considering also selling strangles (which I suppose is like doing a OTM put and OTM call at the same time 🤷🏻♂️).
Any other strats, critiques, or other advice for this new environment is welcome. Thanks 🙏