What kind of returns can you generate by selling puts at far less than 1% of spot?
You really believe selling garbage options is an efficient use of capital??
Show us the numbers..
What kind of returns can you put up??
And how much money does your buddy make selling garbage options??
If you are in the business to make .05-.10,then knock yourself out..
First and foremost,I guaranty you will be a net loser....Those .05 options will go to 5 bucks sooner or later..
Secondly,whats your return on...
Its an awful awful idea on every levels.
If you feel compelled to sell garbage,do a split strike fly or a 1 x2..At least you can make real money...
Let me guess,you also believe Global warming is a complete fabrication of the truth...
Read the China Study,and get your cholesterol levels checked:)
To the OP,
Run a simulation with your chosen strategy.
Now run MAE/MFE reports and look at the MAE trades distributions,looking at scatter plots...
Quantshare costs $250 and you can download free data(or pay for Norgate) and do all you ask..
Warren Buffet Accounting by Stig Broderson is a good start.
Horizontal trendlines..quite possibly
Sloping??? Best of luck
Somehow,Warren Buffet and Desperate/Jealous dont belong in the same sentence....
And on a related note.Brad Gerstener returned 50% over the last...
FWIW,he made the statement in 1999..
Im not a Warren nut hugger,but he made that claim,and he wasnt referring to private equity deals.He was talking small cap..
Warren has said he guaranties he could make 50% per annum if he traded far smaller size.
I believe he means what he says regarding...
Unless you were Peter Lynch
Separate names with a comma.