Near the end of last year, I went back to class to learn how to program in VBA. Just yesterday, I finished a program to calculate a mechanical mathematical system similar to what you posted. I then used it to backtest SPY going back to 1993. First few runs kind of verified your statement that (for some unknown reasons), the best exit/stop is equal % and at a modest %. A tighter stop actually made things worse. Also, adding a holdover to the next day improved the outcome. The system generated only a modest CAGR profit over 25 years. Overall, the profit/loss is very sensitive to whatever assumptions I put into generating IV, to initial option values, to assumptions made on profit/loss exit, time to expiration, to calendar period.... I suspect that either my program still has bugs or the system is too dependent on situations not within my control (I maybe missing some rules). Or perhaps I am fooled by randomness again?
Yeah, brilliant strategy. Because they trade such huge volume across the available strikes! you fucking moron.
I'm embarressed to ask, what are Flex Options, and how do I find them to trade them? It's not obvious on IB or TastyTrade. When I select SPY, there's only one type of "Option" to trade. I don't see an option for "Flex Options". I did a google search on it, but it's still not clear. Feels like I'd have to have an account with CBOE to trade them, but that doesn't make sense.. I'm still learning.
https://systems.cboe.com/user-services/register they are custom options that you offer to buy and sell. the most lucrative options i have found are to sell the weekend risk puts from friday to monday. https://www.cboe.com/products/flex-cflex
many large investment firms will pay for over the weekend risk protection and they will pay big for it.
Of course, didn't you watch those infomercials of us amateur retails all trading from our private jets and yachts, or from the beaches at Monte Carlo after we paid $99 to take those option courses?
Sorry but i cant help it to respond on an old post. Pertaining to your "discounted entry", i don't think price charts of options make any technical sense, unless you're applying a fixed percentage or fixed number to be discounted, otherwise on what basis do you place a limit order? Thanks.