What a stupid study

Discussion in 'Trading' started by wxytrader, Mar 29, 2024.

  1. $6500 USD is the notional value of getting assigned..sry I had CAD. $2800 is what is statistically at risk based on the atr for the same time period. I do not get margin on CLSK. Yes I look mostly at return on risk rather than return on capital...capital allotted is just the price of admission...capital at risk is what I want to account for. :)
     
    Last edited: Mar 31, 2024
    #141     Mar 31, 2024
  2. danielc1

    danielc1

    Wtf 8.5k???
     
    #142     Mar 31, 2024
  3. taowave

    taowave

    $6500 is the max notional you will take down per name..
    That means on a 65 dollar stock you will sell 1 put,on a 32.5 dollar stock you will sell 2 puts.


    68 percent per month does not compound to 500%...How did you compute that?

    Return on isnt using componding,just the arithmetic sum?

    Are you basing the monthly returns on the premium sold,or the margin posted for a short put?

    Im guessing if you sell a put at 1 dollar,it goes it worthless,you make 100%.
    Its not return on Margin?

    WTF is ATR adjusted?






     
    Last edited: Mar 31, 2024
    #143     Mar 31, 2024
  4. ironchef

    ironchef

    It's early Easter Sunday morning sir. :D:D:D
     
    #144     Mar 31, 2024
    wxytrader and taowave like this.
  5. taowave

    taowave

    You cant go easy on a guy who drives Vintage Lambos.He loves the attention..Do you really think he actually beleives the stuff he comes up with?? Its pure entertainment for my man

    And stay posted..My boy and I are crunching the numbers :)


     
    Last edited: Mar 31, 2024
    #145     Mar 31, 2024
    ironchef and wxytrader like this.
  6. I allott only a certain percentage to single stocks...basically what my premium can surpass x 2 in a year in case of bk. So in CLSK's case my math tells me I can collect about 15k per year on 3 contracts, and after 48 days it looks to be on track, thus why I keep my allotted funds to about 1/2 that. I will scale up with increasing the amount of tickers and probably increase to 5 contracts each.

    On indexes like IWM I have to allot more cash obviously, so its not really as capital efficient, however it delivers about the same premium with less risk as it is every other day versus weekly. So its a balancing act.

    ATR adjusted is what is the largest drop the stock has made in a set time frame or 1 SD whichever is larger.

    So for return on investment I am taking the 15k I am collecting in premium / 8.5k (6.5k USD) I had held up in the investment which = about a 172% annual return.
     
    Last edited: Mar 31, 2024
    #146     Mar 31, 2024
    taowave likes this.
  7. ironchef

    ironchef

    You run out of things to do around the house?

    I have some bushes that need trimming. May be you can use some exercise. :D
     
    #147     Mar 31, 2024
  8. taowave

    taowave

    What house? I live in my Lambo
     
    #148     Mar 31, 2024
    ironchef likes this.
  9. ironchef

    ironchef

    Subaru. OP convinced you to trade your Subaru for a Lambo?

    OP is not entirely clueless, like me. Seems to me there is some logic to OP's madness.
     
    #149     Mar 31, 2024
  10. S2007S

    S2007S


    35 yrs yes but it did come back. See here in the US no one has patience so 3 yrs would feel like 35 yrs for most!!
     
    #150     Apr 1, 2024
    ironchef likes this.