Do you guys ever get tired of me being right?

Discussion in 'Crypto Assets' started by wxytrader, Jul 4, 2024.

  1. There are ZERO option strategies that can out perform just holding underlying. All you guys do is chase your tails while chasing IV pops lol.

    Example if you buy 100 calls options versus 10k shares. The shares will out perform...the only edge the options can have is an added extrinsic value. However, extrinsic value gained will not over come extrinsic value lost over time so eventually you will give it all back. So theoretically they are equal performers but you also have to overcome fees, a huge spread, and a premium lol.

    You would never beat me at poker because I go all in every hand.
     
    Last edited: Jul 11, 2024
    #51     Jul 11, 2024
  2. Coin Flip

    Coin Flip

    NVDA is at $130. So if NVDA goes to $200, I would have made more money investing $10,000 in the underlying NVDA shares at $130 and holding to $200, instead of investing $10,000 in NVDA calls at $175 strike?
     
    #52     Jul 13, 2024
    johnarb likes this.
  3. ondafringe

    ondafringe

    That would seem to include your option strategy, as well.
     
    #53     Jul 13, 2024
  4. poopy

    poopy

    I can outperform any Delta1 strategy in vol over spot. Risk-adjusted or notional (or both).
     
    #54     Jul 13, 2024
    Global OptionsTrades and johnarb like this.
  5. Darc

    Darc

    There's a lot better means of determining a Stock Market Primary trends stage than Elliot Wave.
     
    #55     Jul 14, 2024
  6. Let's have an example.
     
    #56     Jul 14, 2024
  7. Darc

    Darc

    One of many would be the Inflation/Interest Rate cycle.
     
    #57     Jul 14, 2024

  8. upload_2024-7-14_14-58-7.png


    Buy 46 SEP20 NVDA CALLS @ 2.17 (10,000/2.17/100)

    The delta of your trade is .15 so a 15% chance of expiring ITM. 1SD move will put price at about 175 on SEP16 so the future price calculates to 3.64

    3.64-2.17= $6762

    However you are risking $10k every time with only a 15% win rate...if you cut your losses on the trade at 50%, then you are now @ -5k, and would need the $6762 just to turn a profit of $1762 which is worse than if you had just bought shares.
     
    Last edited: Jul 14, 2024
    #58     Jul 14, 2024
  9. What are we making 1 trade every 5-10 years? :)
     
    #59     Jul 14, 2024
  10. Darc

    Darc

    Alot better shorter term indicators than Elliott Wave too.
     
    #60     Jul 14, 2024