Wow - author of website spent an amazing 100,000 hours of research and historical testing to discover......(drumroll)....selling theta!:eek:
-------------------- Here's some (mostly negative) reviews: http://www.elitetrader.com/bo/index.cfm?action=view&B_ID=25&CatID=4
==== JW - what do you consider to be the advantages and disadvantages of selling a straddle on ES rather than SPY? Another thread mentioned that...
==================== your max return going into the trade was 179/max loss = 179 / (400-179) = 179/221 = 81% your actual return = final net /...
Fakie Phil has a very lengthy journal on option spreads...2302 pages You can see what a very experienced trader earned month by month, and...
http://www.poweropt.com/bpspreadhelp.asp net credit / (margin required - net credit) another way of saying max profit / max loss
JW - I was backtesting on thinkorswim last night and selling straddles has been a profitable strategy recently, especially with the increased IV....
Mark - do you have the data to determine how often you would have touched your stop-loss rather than whether the expiration date price would...
I should have said DOTM puts rather than DITM puts in previous posting. Something else to do in addition to looking at the historical price...
If you use the thinkorswim "thinkback" function you can backtest to see how buying a DITM put as insurance works in various scenarios. For...
Helpful hint -- Look at option quotes in a newspaper, rather than online, and it will be very clear why some trades are called diagonals and...
This link has some basic tax info http://www.armencomp.com/options-capital-gains.html Make sure you read the section on broad based index...
BR - I didn't see any listed under Options but found this one under Hot Hands ......
After reading about fat tails yesterday in McMillan's book, I'm certainly leaning towards buying rather than selling. It's like a roulette table...
Not to worry, I'm well aware of the lack of black boxes, secret option formulas, and crystal balls. Must admit that I was most bummed out about...
For those of you who like to crunch your own numbers, you might like this spreadsheet: http://www.gummy-stuff.org/multi-stocks.htm If you...
I usually get std dev from ToS but to exercise the Excel skills I downloaded the closing prices for WMT for the last year, plugged it into Excel...
Okay-- just wanted to make sure all readers realize that some equivalents are "more equal than others" depending on the circumstances. Theta
Synthetic equivalents are identical?? I agree that on expiration day the risk profile of a naked put is the same as a covered call but what about...
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