Would that single trade outperform if you traded in smaller time-frames? Lets say you only traded this 300 SPY June 2020 call, and you also traded smaller time-framed trades and managed winners. What I'm trying to figure out is number of occurrences a better deal? The more data the more it tendency centralizes. And BTW your example assumes going long an ITM call, why not spread it and buy a deep ITM call spread? I'm not speaking solely on going long either. I'm talking about longer time frames in general, it could be a year long credit spread or year long debit spread, a year long naked put or a year long strangle, whatever the strategy it doesn't matter, i'm just wondering if one could trade these strategies in far out contracts in the term structure.
Not following your choice of strikes..If you are really convinced you go ATM,but otherwise 1/2 ATR ITM.. That would imply you choose the lower Delta when you have more conviction?? How do you choose your short leg??
"Exactly! If your stops are getting hit you don't know how to trade. " You do realize that comment is moronic?
Bid offer spread on 1 year options,let alone spreads is way too wide to trade for a 1 ATR move.. He's a delta trader trying to offset some of the decay...At least that's what I am getting out of this
Gut feel. The reason I chose ATM is because I can buy more contracts (I use a fixed dollar amount). What would you do? Weird I do it profitably. What time frame are you looking at? Edit: ah I see you are talking about a year out. I'm talking two weeks out.