What Option Strategy Do You Use?

Discussion in 'Options' started by ironchef, Mar 2, 2024.

How Do You Trade Options

Poll closed Mar 16, 2024.
  1. Mainly an option writer

    41.7%
  2. Mainly an option buyer

    25.0%
  3. Mainly non directional combination or spreads

    45.8%
Multiple votes are allowed.
  1. Back test what? Just add up all the premium. Bank.
     
    #31     Mar 2, 2024
    ironchef and taowave like this.
  2. taowave

    taowave

    Lol!!!!

     
    #32     Mar 2, 2024
    TheBigShort, Zwaen and ironchef like this.
  3. Quanto

    Quanto

    Sounds interesting. Can you give some more info and explain the process?
     
    #33     Mar 2, 2024
  4. ironchef

    ironchef

    The risk you professional traders refer to is volatility not risk of ruin. A volatile stock with high drift will be less risky if given enough time.

    I think you can backtest QQQ vs SPY, DIA with 30 year running windows to see my point.
     
    #34     Mar 2, 2024
  5. ironchef

    ironchef

    Let's say your option is in the money at $100 a share and you have the right to exercise but don't want to for whatever reasons and want to exercise a year from now. You sell a 1 yr call above $100 and use the proceed to buy a 1 yr put below $100. Net cost zero and your gains will be bounded by those two strike prices.
     
    #35     Mar 2, 2024
    richie90 and Quanto like this.
  6. ironchef

    ironchef

    :D:D:D
     
    #36     Mar 2, 2024
  7. what is CSP ?
     
    #37     Mar 2, 2024
  8. zghorner

    zghorner

    Cash-secured put

    writing/selling/shorting a put with enough cash in your account to purchase the stock if assigned.
     
    #38     Mar 2, 2024
    trend2009 likes this.
  9. taowave

    taowave

    Sell enough garbage puts and volatility will become risk of ruin.

    Speaking for myself,when the market proves me wrong,I am out of time

     
    #39     Mar 2, 2024
    ironchef likes this.
  10. newwurldmn

    newwurldmn

    Did you trade in 1987?
     
    #40     Mar 2, 2024