That means the distribution is never really normal. True, these are all approximations based on past behavior.
Then you have about a 62% chance of breaking even or better without adjustment.
Not if the realized volatility is in your direction. Say that the premium you capture is 1/3 of the current 20 day SD.
No, I don't know that.
I no longer try to avoid having it go in the money by picking a strike below the current price. I sell near at the money strikes, that's where the...
Hi ffs1001, These are good questions, the sort of questions I expected when I started the thread. 1) Stock Selection - I'm not concerned with...
That's far beyond anything I can achieve. Have you shared your method?
So what is everyone else doing to make 25%-30% while waiting for the crash? There are so many things that could happen - a nuclear war would...
It's also been pointed out previously that the graphic represents a purely mechanical method, measuring results at expiration - living and...
I wasn't doing this in 2008. But you're right, it would have caused a drawdown. I've never claimed a panacea or holy grail, I just claim it's...
So you consider sarcasm and mockery civil? Instead of uninformed knee-jerk reactions and irrelevant criticisms, why doesn't someone give some...
I believe in civility, but I admit I do get annoyed when people repeatedly cite Karen the Supertrader or somesuch as proof that we're doomed....
We've already pointed out that our method is mathematically more conservative (less loss potential) than the equivalent stock position sans...
A situation like that would never occur to me, Bob. You must have seen about everything there is to see by now.
I didn't fare nearly so well as Mr. Morse's client either - AMD traded down at the open and I took a profit of $178.
I was short 15 AMD puts at 27.5 Friday afternoon. AMD closed at 27.85. I marked the puts Expired in my spreadsheet. I was surprised Saturday...
Right, I responded as if we were talking of equity options, even though the thread was about index options, which are a whole different animal....
Yes, I only trade equity options. But not sure why you say it's inherently leveraged. If the stock is put to me, I have the cash to buy it. But...
Agreed. It's only dangerous if you're leveraged. If you are covered, then you can keep trading time value for intrinsic value for as long as you...
I prefer selling my covered equity puts on down days - I suppose I'm more a falling knife type of guy. But ultimately I don't think the entry...
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