Leverages AI concepts and technical analysis to identify longer term bullish trends and captures upside moves with a multi-leg combo

This is a longer term strategy that trades the SPY, based on moving average crossovers, and additional advanced signals. It uses a combination of AI price predictions, technical indicators, and volume trends to identify bullish conditions. It purchases a group of in-the-money and out-of-the-money calls and holds them for up to two weeks to take advantage of longer term bullish moves, maximizing return. Due to overnight risk and premium decay, holding to expiry day* has proven to be the most effective. We will close the position on the morning of the day of expiry to ensure that we aren’t assigned the position. If there is a substantial price breakout, the strategy sells the current options and reinvests the proceeds to buy higher strikes to capture the increased profit (known as rolling). Backtesting shows this increases the returns of the strategy. Additionally, strikes are managed independently so we can optimize the rolls based on each individual position. 

Option price volatility can cause the option price to decline significantly before a clear sell signal appears. The risk reward is in favor of holding and this is validated by our testing shows that holding until expiry produces the best results.

This requires a substantial portfolio size to trade, since it relies on owning 3 separate positions at once.