Episode 4

full
Published on:

21st Apr 2020

Case Study: Debit Spread vs. Leveraged ETF

There are different ways to get long and different ways to trade with leverage.   

In this episode, we're going to look at both by comparing two leveraged ways of getting long the S&P500. We're going to use the buy and sell signals of the Pure Alpha Strategy as applied to the SPY.  

We'll discuss the results of trading shares of SSO based on the buy and sell signals of the strategy. SSO is 2X Bull ETF of the S&P500. We'll then discuss the results using the same buy and sell signals of SPY but then buy an "at the money" call debit spread, also known as a bull call spread.   

As mentioned in the podcast, see the links below to get the video training of the Pure Alpha Strategy.  

Pure Alpha Strategy (Part 1): bit.ly/2Jjzu1G  

Pure Alpha Strategy (Part 2): bit.ly/33Z2ANq  

Pure Alpha Strategy (Part 3): Crisis Alpha study on UVXY bit.ly/2UZjXJX  

Thanks for listening and supporting independent stock market research.   

J. Eric O'Rourke https://www.patreon.com/VerticalSpreadOptionsTrading

Listen for free

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Stock Market Options Trading
A retail trader's guide to consistent profits.
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Eric O'Rourke