Discussion
Potential dip long circa SPX 5029 early in the week. Take a 50% position in Day Trade SPY calls. Stick to 50%. No more. Get a win under your belt.
Emerging short set up into EOW if SPX trends up into the 5150 range. Allocate 50% to Cyclical SPY puts. (No Home Run puts until SPX 5000 toward end of March.)
Do not allocate to Swing and Tactical puts until key levels are broken as confirmed by The Signal.
At the interim low of SPX 4800, take half position in Tactical SPY calls and a half position in Swing SPY calls. And depending on the strength of The Signal, take a half position in Day Trade SPY calls.
Portfolio Construction Framework
• Day Trade. 2-day duration trade: 4DTE .5% OTM, up to 10% of capital
• Tactical Trade. 2-week duration trade: 4WTE 1% OTM, up to 25% of capital
• Swing Trade. 1-month duration trade: 2MTE 2% OTM, up to 50% of capital
• Cyclical Trade. 2-month duration trade: 4MTE 4% OTM, up to 100% of capital
• Home Run Trade: 2-month duration trade: 4MTE 10-20% OTM, up to 10% of capital