i am just curious, you dont have to share if you dont want to but what was the loss in % terms of credit received?
That makes more sense. I was assuming you were referring to return on risk. Admittedly I am a bit more aggressive in regards to total port gains.
the difference being you are probably risking upwards of 50% of port funds to gain 5% or so a month. I am risking 3-5% to gain around 2-3%. That's one of the reason's why i prefer close to the market spreads.
That's top secret. Young enough to still be quite aggressive, but old enough to have been trading options for a while. And I wasn't some child prodigy like riskarb.
You are making me look at that ugly trade again . I took in .55 and got out at 2.30. So my loss was 1.75 or about 3x my initial credit :eek: Here is an update of my OTM vs CTM paper trade: May 16th 10 June 1215/1225 puts, credit of $.50 = $500 with $9500 risk May 17th 5 June 1240/1245 puts, credit of $1.20 = $600 with $1900 risk May 22nd 1215/1225 puts mid is $1.00 = loss of $500 1240/1245 puts mid is $.80 = gain of $200 May 31st 1215/1225 puts mid is 1.2 = loss of $700 1240/1245 puts mid is .85 = gain of $175
This is the point where we are similar. I prefer close to the money for the same reason. I don't have to tie up more than 10% of my portfolio to achieve the desired results.
You've got it. That's why I am moving to the CTM spreads, roughly similar reward to OTM but with less risk as per my paper trade example I posted.
I ask so that i can get an idea if you have any kids, marrying a rich girl would help me with my capital growth. Just trying to listen to coach's advice LOL