To newwurldmn, VTS, Occam, Windlesham1 and Mario Cesolini, I really appreciate your comments and coaching. Benefited greatly from your insights....
Look at this article on the Russell 2000 index buy-write:...
As I said my back ground is not finance so I am somewhat ignorant. Lets see, this is the Black Scholes equation: [ATTACH] From it you can...
I have an OX account. It is not difficult to get level 1 & 2 from OX. Level 0 is buy stocks/bonds/mutual funds. Level 1 is covered calls/ sell...
From what I read, most of the studies said buy-write gave lower volatility but not necessarily better absolute returns. Theoretically, buy-write...
newwurldmn, I am not an economist nor am I a finance person, just a layperson. Here is what I understand from reading economic books. So my...
Actually if you run the math using Black Scholes, you will find long term, long calls have positive returns better than investing in the...
If you can swing trade successfully, you should be able to get good return with itm and possibly more with otm on a long term basis. But the...
Thank you for your insights. Good thing I have done some hedging and protecting my trades so the recent losses are not as large as not hedging....
Very interesting observation. Thanks for sharing. Seemed like something bad happened every 8-10 years.:( All major currency issuers had/are...
Here is a study on the percentage of options expire worthless statistics: [ATTACH] So the statement that most options expired worthless is not...
I tend to agree. My actual experience: I collected small premiums writing but got called/put in volatile markets like 2015. Rolling/moving...
+1 If you are good at predicting, you can make some real $ trading options. Many of us new to options came from trading the underlying so are...
Agree. However, if S3 is right in his directional bet, his calls should be ITM and he can always get out with price ~ = stock - strike.
If you are really really bullish, buy long OTM calls that are ~.2 to .3 Delta with > ~ 3 months expiration. Buy at mid point of bid ask.
You were selling put so you were bullish on MCD!
As someone else said, there is no free lunch. I found that most folks that long ditm calls were retail folks like us and our counter parties were...
I agree. That was my finding and that was why I ended up trading illiquid equity options. I also tended to go where uncertainties in direction and...
You are right about the dumb money part: That is me as I only traded equity options :(. But if I trade index funds I would be playing against the...
Thank you VTS for the suggestions. I will look into it, especially the spreads.
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