best way to go long

Discussion in 'Options' started by morganpbrown, Dec 22, 2021.

  1. #11     Dec 22, 2021
  2. taowave

    taowave

    Check out Orats and run some scans and simulations and see what risk reward profile works for you

     
    #12     Dec 22, 2021
    morganpbrown likes this.
  3. There's a lot under the hood at ORATS!
     
    #13     Dec 22, 2021
  4. taowave

    taowave

    Yes there is..They have a new screener/scanner with is about to be released which is MUCH better than the old one..Its really good,and in addition to the quant/distribution/forcast metrics ( theoretical edge),it also has terminal R/R metrics as well as probability of profit..

    You can also select filters that match your outlook on the underlying and scan multiple option strategies against each other and sort per your chosen metrics...
     
    #14     Dec 23, 2021
    morganpbrown likes this.
  5. verial

    verial

    Unironically call ratio backspreads. You can only lose if the stock stays stagnant; you get unlimited upside; you get downside protection.
     
    #15     Dec 23, 2021
  6. newwurldmn

    newwurldmn

    how is this superior to just being long calls?
     
    #16     Dec 23, 2021
  7. taowave

    taowave

    Are you saying a backspread outperforms a long call with the same delta??
    What duration
    Your answer is a bit loose...

    Quick backtests in the SPY show the naked call does better,but long stock outperforms


     
    Last edited: Dec 23, 2021
    #17     Dec 23, 2021