The 1122 Spread
This is a strategy that I'm still learning about and have little experience using. I'll be updating this page as I learn more. Therefore, nothing on this page is set in stone, and it may not reflect the actual trades that I will be using in the moment.
The 1122 Spread consists of 1 put debit spread at 0.25 and 0.20 delta, and one put credit spread at 0.05 and 0.01 deltas. The purpose of this spread is to have a very safe put credit spread, that will basically never go ITM especially with large indices in conjuction with a put debit spread that provides a lot of downside protection and makes the spread a lot more delta neutral.
If you get enough profit early, you can close the credit spread part, leaving a “free” put debit spread that you can keep as a hedge. Also if there is a market downturn, you can actually make 4x profit if the debit spread goes ITM.