not saying buying the shares to write the call is a good idea lol, just that was where the debate started iirc.. the whole original point was just...
@taowave @newwurldmn @Kevin Schmit as @destriero pointed out, i may have misrepresented what i was trying to say above, so to clarify: a 30D put...
so, i understand that you're referring to the forward, not the ETF price, and in that case the numbers may well be different and i'd defer to you...
ah word.. i could see the confusion.. now that you understand what i'm actually saying, does it make a little more sense?
same strike call and put do not always trade at the same vol? that's the whole idea behind vol skew, that put-call IV isn't always at parity.....
i'm talking about the actual closing stock price of IWM.. $221.40 (+0.65%).. at least that's what ToS is showing?
i'm going off the close price, not the AH price.. options prices don't move AH, so the prices should be the same as they were at close, no? also,...
no, that's not what i'm saying.. first, to skew, i'm not saying it guides your bias.. i'm saying it gives you a metric for how to most efficiently...
i'm talking about as it relates to delta exposure.. i.e., you receive a larger credit per delta when selling the 35D put versus the 35D call, even...
thanks for taking the time to break all that down for me.. super appreciated man, everything you said clicks perfectly.. we aren't trading delta...
yah it's a whole world of market theory in and of itself... it can be very exciting at first, to see how you can manipulate skew to create trades...
no... i don't know all the mechanics of how PUTW manages their trades and the criteria they look for on entry... what i'm saying is that if you...
i'm soooo glad you asked all this cuz the answers are all pretty straightforward and really easy to comprehend so you should be able to follow no...
you are correct, they perform better in down trends and worse in up trends.. but expected values is all about probabilities, and probabilities...
it's a bit more convoluted than that.. yes, the velocity of risk is seen to the downside because indexes grind up and crash down.. but look at...
if it confuses you, then read thru it a bit slower?
yes, 100%.. i said "pretty much" - meaning most of the ones i'm aware of, but NOT all - "everything retail investors touch" - meaning the stocks...
all the retail guys i know, of course.. obviously i don't know everyone who trades the stock market :confused:
you are correct about the expectancy.. the reason i suggest selling puts on indexes works in the long run is because indexes have put skew.. if...
@taowave it's all in the metrics of options pricing.. iirc studies have been done showing selling puts on indexes outperforms.. reason being if...
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