Buying puts safer than calls

scriabinop23 · Aug 5, 2013

Quote from Option_Attack:

Just for fun, here are some quick SPY stats. They are the percent changes from 3rd Fridays for the last 10 years. If doing Condors, keep in mind the marked, greater-than-5% moves:

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Third Friday to third Friday changes (at Close) for SPY [/quote] Those % changes look erroneous. Repost with start prices... Also don't forget to factor out dividends as well. I forget if on 3rd Fri or end of month options, but there are some dividend days on opex days for SPY -- already priced into options.
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newwurldmn · Aug 5, 2013

It's taken into account in his numbers as the stocks are ex-div on the day of expiry and he hasn't added them in.

GregLoehr · Aug 5, 2013

Quote from FXforex:

In general the market goes up, so you would be better off buying calls.
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LOL

Option_Attack · Aug 5, 2013

Quote from scriabinop23:

Those % changes look erroneous. Repost with start prices... Also don't forget to factor out dividends as well. I forget if on 3rd Fri or end of month options, but there are some dividend days on opex days for SPY -- already priced into options.
More...

This is EOD SPX data as presented from TC2000. It is correct enough to develop profitable strategies. I've been doing it since '99.

Good trading to all.

blackswan7p · Aug 6, 2013

Quote from Option_Attack:

This is EOD SPX data as presented from TC2000. It is correct enough to develop profitable strategies. I've been doing it since '99.

Good trading to all.
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well said

i think it is equivalent

5to12 · Aug 6, 2013

Quote from Trader.Fighter:

Thank you for the stats.
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Second Thanks. I didn't realize the monthly avg. diff. was so great.

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Buying puts safer than calls

Buying puts safer than calls because of downtrend speed

Yes - Because price drops faster than it rises, therefore, less time decay.

Equal risk

scriabinop23

newwurldmn

GregLoehr

Option_Attack

blackswan7p

5to12