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Nothing. I just use a different style for trading. I look at MP and Value areas. That does it for me to pin point entries and exits during the day in combination with order flow represented trough cumulative delta. But if that would not exist, I would use just Ma.

I could make a living trading pure based on ma´s. Trend (from the ma) and counter trend (extend X from the ma).

Don't worry, it is not rocket science. Read up about portfolio margins and you will do fine.

It is not the amount of money in your brokerage account that will determine if you make $50 a day, but your skill set. Money is never the problem.

Thank you for the explanation. And I'm sorry that I confused you with my explanation. I'm indeed referring to strike skew, like you called it. Funny, doing this stuff for a real long time now and still learning new stuff about my own methods.

Ok, I do not think what I'm talking about is arbitrage.. How would you explain the behavior differences between a call and a put, with the underlying?

I'm not talking about parity. I'm talking about behavior of the underlying that volatility goes up, when the underlying goes down and that therefore behave differently then when you have an opposite scenario, with a call. That volatility gives different price actions in your options. Both call...

Ok. Btw running a backtest with naked puts give not the same results as a covered call strategy. They are similar in risk, not in performance. There is also a skew in volatility for puts, that make them more expensive. For example, with covered calls you can roll faster with your positions, if...

I did not do it on the SPY index. I used a combination of stocks. Mostly dividend stocks, sometimes stock that meet the canslim criteria. I have also a question: how do you backtest this strategy? Just curious.. for so far I know, there is no data on options that go so far and what you get out...

In the last 25 years, an average of 17% returns, with a max of 35% and a min of -3%. Two losing years: 2001 and 2008.

Well, how do you calculate the return? For example, it took 32 months to get the invest back of one stock, and I'm still collecting every month the premium since more then 10 years. I usually shoot for a 1% premium, a month with a cushion of about 8% out the money.

There is one tiny bit more to it. The drop doesn't happen in a day. So, when the premium gets to 25% of it's total, I'm rolling the whole way down... It is not so bad in the worst case scenario.

I´m going to try too explain my view: 1) if you are at the end of the option life, you have no more time decay. So, delta is almost 1 to 1 with the underlying. The only problem we have is that if we let our stock call away, we have a difference between what we have paid for it and what we get...

Yep, you do that. I will keep on doing what I do.

I'm a very naive 30-year experienced options trader, so please take anything I write with a grain of salt here: If you write off your investment in the SPY, let's say at this moment 438 a share, X 100 = $43800. If you then write the call July 438 for a premium of 7.2 or $720. Your $720 dollar is...

OP is right in his thinking. If you write off your investment in the stock SPY, and just focus on getting premiums that have a time decay, it is a matter of time before you get ahead. Your initial investment of getting the 100 shares and your ability to write 1 call, will not change if price...

Who cares? I talk to people everywhere and there are a lot of people who are trying to convince themselves they are the succes they are, by talking about it to other's. I think it is human nature. I have a tip for anyone wanting to learn anything: look for the one showing the fruits. Real fruit.

Low margins... is a fools game. The only reasonable positions size is the position you do not care you win or lose and do not lose any sleep over it. You do not get at that stage if you use low margins. Even with widely diversity in your portfolio, you should never ever base your positions on...

Why don't you just take the s&p and explain what you want to share?

Yes, you can thank me later.