If you sell naked puts to collect premiums and base your decisions on the premium, itâs a bad idea. If you do it to buy stock you want to own,...
See a quote in one of my previous posts: "Over a period of four decades, I have spent thousands of hours trying to devise the "perfect" option...
Yes, you are correct about this. However, even if we completely remove the November trades, they still would end 2008 almost breakeven, after...
If I'm trading call and put spreads at the same distance from the underlying, why do you call it directional bet? Then once again, isn't the...
A question to experts: One of the services that I mentioned has the following comment about their Jan. 2008 loss: To our surprise, and...
I can definitely do it. Meanwhile, here is the history of my IC trades since April 09: May: -7% in 31 days June: 21% in 27 days July:...
Like I mentioned in my first post, I started using iron condors in April 2009. Despite very strong move since then (rut moved from 450 to 600 â...
I think that everyone agrees that risk management is the key, but I guess the key question is put very well by Terry: âThe question for all...
I know. He doesn't hide it. Even in this article, he mentions that "In the January 2008 expiration month, the Russell 2000 (IWM) fell 14.5%,...
I just read a very interesting article on Terryâs Tips website. Here are some extracts from the article. Over a period of four decades, I...
You can say the same about every strategy. If you were long bank stocks, it worked for years, but in 2008 you would lose 70-90%. Risk management...
I think we all agree that the key to successful trading is risk management, no matter what strategy you use. I would like to go into some details...
This is irrelevant to margin calculation. If I make $2, it's 25% profit (2/8). If I lose $2, it's 25% loss. If I lose $4, it's 50% loss. If I lose...
Why not? What are the correct calculations?
You are making excellent points, and I would like to comment on some of them. First of all, I donât think that it is easy. The purpose of my...
I wasn't sure that I'm allowed to mention names of those services, but since you mentioned condoroptions - no, it's not condoroptions....
I did calculated it as return on margin. If I collect $2 for an Iron Condor, my margin requirement is $8 (10-2). If I buy it back for $0.3-0.4, I...
You are right of course. What I meant is sit tight and watch the time working for you. If I collect $2 for an Iron Condor, and I can buy it...
No, I'm not looking at option selling strategies as a way to generate income. I want to increase my returns and increase probability of success....
Separate names with a comma.