Great comments, even though I like and agree with @raVar's concept in general as it is something I have been thinking about a lot since I started trading options. One general comment is for us mom and pop amateur retail option traders, I don't think selling spread that is 15 delta out automatically has positive expectancy. Not after commissions and slippages and bid/ask-spreads. When I first started trading options back in 2013, I did a lot of mechanical covered calls on stocks I owned, also tried call spreads too. Didn't work that well for me and I chalked it up as due to commissions and bid/ask slippages. For it to work for me, I needed to have a more correct opinion of the direction/timing/magnitude than the MM who bought the calls from me. That was a very tall order.
Actually, I think I'm just going to include a permanent link, so I don't have to repeat myself ... As always, to see how we are doing on each process? Check out the tabs in the spreadsheet below. Thoughts, questions ... comments? Post 'em below! _______________________________ Simple Longer-Term Hypothetical Non-Correlative Strategy Processes: https://www.elitetrader.com/et/thre...ournal-that-shows-profit.337303/#post-4951437 Spreadsheet: That keeps track of each trade, each process, and then everything together ... IF YOU ARE ALREADY AN OPTIONS TRADER, Here is a Disclaimer: I know, I know, I know ... as well as a secondary ... I know ... I know ... I know
Dude, you can replicate the entire penny-position in vol. No need to take the risk in shares. The guy is remedial 099 and three noobs are gushing. He's long 12 shares and received a $22 credit. C'mon. The guy shorted Q-vol against SPY. Why? BC it's so exotic! QQQ +0.71% SPY +0.47% Go, you!
Can someone please explain to this noob what's non-corr about this abortion of a strategy? TIA. and yes, I am the ONLY reason this thread has any views. Y'all know it.
Welcome back. I missed your biting comments. I have to admit you are correct, still I am gushing about the strategy, better than me blindly doing covered calls.