Sept 15 140/155 Put Spread for $2.03.
2x stop loss, 50% win mgmt.
Thanks for the comment. I just usually stick with a strategy of selling anywhere from .25-.35 delta on the put side and then assess the credit received on whether it's worth the play or not. I use the 2x stop loss and size accordingly, typically anywhere from 0.25-0.5% of my account per underlying.
You're right, the spread has $1,297 of potential loss, but I only buy the wings in this account (IRA) do reduce the buying power needed. A margin account would relieve me of that BPR.
The 2x stop loss is not guaranteed in a hurry, no. One way to counter act that is to trade far enough out in time, so that your gamma is not as much of a factor because enough theta will cover that up for you. If need be, I can immediately come in here and sell the call ontop of the put to create a straddle and reduce my deltas if I had to.