Thank you for the coaching, I can tell you really understand options. No need to get upset sir, I understand your observations and agree with many of your points. About academic studies, they often have to assume a set of produceable but consistent, simple, assumptions in order for the hypothesis to be testable, an automatic algorithm can be programmed to run the tests and PhD thesis written. They are however very useful to me as they provide a framework for me, a retail, to understand the fundamental principles of options pricing and interdependency. Best regards to you,
By the way Cabin111, thank you for sharing your thoughts and method with us. I appreciate your comments even if I no longer mechanically trade covered calls or cash secured puts. If you are happy with your method and outcome and don't want to change, more power to you. If you want to improve and get better, it is worthwhile to give some thoughts on what spindr0 said. There are many way to make money and lose money trading options. None of us have that cornered. Best regards,
Ironchef, I understand options on the retail level, having used them in a variety of ways for 35+ years. It's nowhere near what some of the pros here comprehend and share. I am not upset. If you thought that my ranting against the academic pinhead study made you think that it was directed at you, no worries. It was not, in any way. And you don't have to agree with me at all. "Free will, it is a bitch." For argument's sake, let's assume that the study is correct in that over the long haul, strategy XYZ makes a bit more money than the others. Is that an edge? Just blindly throw your money into it? Now you have a high probability of success? Screw timing and selection. Screw risk management. All in on XYZ !!! OK, I'm having a bad hairs day and I'll stop ranting.
For the interested, here's the free book PDF . https://davidbeitler.com/temp/The Millionaire Next Door [Book]-MANTESH.PDF.pdf