have you read any other books that stuck out in your head.. I read the misbehavior of markets by mandelbrot.. and a plethora of other books all the way from a random walk down wall street. To fooled by randomness.. but I really wanna read stuff more about the mechanics of trading options. im sure you know as options get below. 50 and. 20 cents the commisions go down at ib.. im with ib like you.. I know that probably doesn't offset the cost much but the reality is in order to diversify such a small account like mine I have to incur more commissions as a percentage to the dollar size of the trade to keep diversified by strategy and types of securities. i cant make larger trades for the sake of keeping my commisions down
i'm actually long term directional on the banks.. overly pessimistic the market is about them.. but i wanna accelerate the gains by overselling otm premium and hedging my gamma risk with buy stops possibly.. this is still all theoretical.. finding the right month to sell to where the premium is still good but the theta is starting to reallly burn the premium is probably the deal... bottom line on this trade is there is risk to ways.. BAC goes down for an extended period of time and the call sales don't neutralize the loss. or bac blasts up through my sold strikes before i have time to deal with gamma blow out.