i want to open a CFD position at the same time to benefit from the premium and try to protect my capital
@spy I posted spreadsheet results backtesting x amount of time selling atm puts until assignment, then selling atm calls (regardless of assigned strike) and the premium overtime, overcame any realized losses. This is essentially the same strategy high yield etfs implemented shortly after...coincidence? @Fady911 I would just invest in high yield etfs at this point and save yourself the hassle. Do you really think you can return more than 80% annually? You can, theoretically, but you'd be taking on more drawdown risk. This past month with 100k invested in MSTY you would have collected about 12k in dividends just sitting around.
TBH IDK why this [back]testing and tech know-how is being addressed to me (or maybe the @ signs are an accident since my luser id is a popular ticker too). It's appreciated anyhow. That said, the market is up to it's ears in empirical knowledge. What I find lacking here is a good a priori (pure reason) investment thesis. OP asked for help w/ his strat and I'd suggest he give thought as to why it might work sans number crunching. Then, if it holds water, he can dig further into the deets (and #s). Don't overlook the comment BWS made... "free" money doesn't exist. You'll always have to take on some kind of risk. The bright side is, you don't have to out run the bear... only your competition. GL/HF (bitches)
About 8 years ago, I had exactly the same thinking and worked on a strategy to make regular income from time decay. I couldn't do it and years later came back to it to finally find the answer. It can be done, the win% is about 60% to 70% with RR of 0.3:1, it has become my bread-and-butter strategy. Start thinking outside the box. Backtests are worth shit, do it manually. When free money is the goal, nobody is going to collaborate. Either you figure it out on your own or you don't. If anyone tells you its impossible, just say "yes you are right" and continue working, don't argue.
Thanks a lot — you're actually the first person to say that to me, and it really gave me the motivation to believe I can reach something different. If you're open to it, I'd really appreciate it if you could point me toward the first pieces of the puzzle.
Every target has multiple paths to it, it all depends on the traders skill. Don't expect it to be as easy as it seems. Yesterday the market dropped below my preset level, so I adjusted my position to lock in a loss. Today the market gapped back and if I'd only waited, I could have got out with a 130 pt profit instead of a 45 pt loss. But then who knew it would gap back and today is expiry day.