I use puts which are about 13% below spot, 28DTE. These puts have cost me around 17K per 100K invested from 2013 till now. So approx 2K per year....
I always sell low delta calls and puts, most of the time 2DTE. Last year i had 25% return on capital with a max drawdown of 11%. And yes I had...
And buy low delta calendars to protect the written calls.
Nice example!
On expiredate you will get 1700 but lose 3*530. So you will get 1100 and you pay 1810.
You will not get the midprice for these DITM options.
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