2017 was fine. Usually 15%-20% of total capital. My puts are always cash-secured, meaning I front the total amount that could be required if the...
If the put still has time value, I'll keep it until it erodes. Then I would roll it down as far as needed to pick up more time value. This...
I mentioned that I had sold Dec 7 WLL 31 puts on Tuesday as an example of what might happen when a trade moves against me. I thought it might be...
ajensen, Thank you for these ideas. I'm embarrassed to say I wasn't familiar with the Sharpe ratio. It gives us a way to evaluate our returns...
It's not the same position. If I'm at 31 now and roll to 30, that's a different position.
maximumpossiblesuffering gets it: "One of the keys, which you are adhering to is avoiding the use of leverage. It is hard to blow up an cash only...
Smallfil, I doff my hat to you if you are able to buy options and make money. I could never do that and it would make me a nervous wreck. I sold...
I appreciate everyone's response. For my purposes, I don't even think in terms of bull or bear. Stock prices fluctuate. They go up and down....
Does it matter to a put seller if we're in a bear market? Won't premiums go up? My business model doesn't depend on asset appreciation. I hope...
I've traded WLL since the October drop, from 56 to 28. I have traded a lot of stocks that have lost 20% to 45% of their value. I opened a Micron...
I would like to add that there is a widespread misconception that selling premium entails some kind of wild risk that only a fool would undertake....
Well, the logic is that I'm making money. As I said, I don't use leverage. I typically have 5 or 6 positions a week, so even if Twitter or Roku go...
I've been selling premium for about 3 years, and I have a data sample of a couple of thousand trades. My returns so far are between 25% and 35%,...
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