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If you wish to use option as a proxy, you want to aim for contract with a delta as close to 1 as possible. The further away, the less it mimics SPY. Delta 1 means no time premium (pure leverage). Buying OTM options will realize profit only if the underlying moves by the amount the strike...

Covered Calls for income generation is a popular topic and a valid strategy. Lots of articles on the subject. Should be able to get some good hits on 'Covered Calls'+Income. Some key aspects: 1) The underlying should be an asset you are happy to hold (thus treat it as a normal equity position...

'Doubling Down' (or rather, reducing your average cost basis) is a good way to lower the amount of unrealized loss, and therefore make it easier to break even. However, it does mean you are now holding twice as much of an asset that has just gone down in value. Unless you have a legitimate...

Btw, when you say 'margin', do you really mean: I have a Margin Account which means IB will let me sell naked. But any settlement will be done with my own cash (as opposed to cash borrowed from IB). In which case this is not 'really' using margin (in the sense of buying on margin), but rather...

Hello, I simplified my explanation of margin requirements (and the amount you can purchase on margin) to keep that part of the explanation simple. Since the core of the trading strategy is independent of the margin you can get. Margin only effects how much money you can generate and the...

Btw, I love the example of TSLA. I've spent quite some time watching TSLA (I'm fortunate enough to have bought a large quantity after IPO). And one of the things I (and anyone else who watches TSLA) knows: It is *DARN* Volatile. I mean, hot-diggity! It can drop 10-15% in one week, and then...

Hmm... Technically Margin or not should not be vital to the strategy (just affects the total outcome of the strategy). But still, how do you determine which stocks will move in your favour? The: 'probability of the option expiring worthless' Also, when you state 30% every month, are you...

If I understand correctly: -- You get a list of all options that trade with a implied volatility. I.e., TSLA (high IV), trades for a very high premium (a few dollars for just holding an ATM strike). This is easy enough to accomplish with an option scanner that sorts by IV, then sub-sorts by...

I know there's a lot of poo-poohing going on, but I'd rather analyze the theory being presented and pass judgement on that. It may very well be the case that marsman thinks he has caught onto something but hasn't fully realized what the error in his logic may be. Is it possible to post details...

Sorry, thought I saw in a previous post you were looking for funding or to sell the system. My bad. (Long thread!) :P

Get a feel for the markets, yes. Some of market activity is based on sentiment, and generally there is a consensus. Of course, this gets thrown out any time there is unexpected news, unexpected shifts in fundamental data, unexpected central bank or government action, or unexpected macro...

Okey, let's talk some serious points here: 1) As with all scientific conclusions, you need to post your proof of experiment as evidence of the claim. If it can withstand scientific scrutiny then you will get due credit. (Of course, post it on a respectable publication, not here on ET). 2) If...

Makes sense. 750k is not much these days. For investors a boiler-plate response of 60/40 stocks/bonds, with the 60 in one or two ETFs, and the 40 in another one or two. In fact, there are retirement ETFs that even handle it as an all in one solution. So the whole conversation with the...

No transparency. Could be anything from legitimate to illegitimate.

It's one of the best ways to make money on the market. Not by trading, but by telling other people how to trade :) I don't use OptionsMonster, I've read it and thought about it. But I also watch CNBC and I believe one of the co-founders is on CNBC (Najaran?). I've seen his trading...

And a mistake could harm a live trading system. Although it would be great if it was more extensible. Even simple things like custom columns on a watch list (the fundamentals available are woefully small).

You may not learn to relax any time soon. But you can learn to be disciplined. Set up rules on when you trade. Learn to stick to the rules even if you are biting your nails to do something.

May I ask which expiration date / strike you see a .99 delta for 7.76? There are a few things one wants to keep in mind here: 1) We are dealing with very low Implied Volatility right now (multi-year low), which means option prices are very low when buying. So this is not something you can...

You can make 30% in a month. No problem. Easy peasy. Happens all the time. The real challenge is doing that *every* month :) Just because you have one good month does not mean it extrapolates to every month for ever. It simply means it was a good month.

I say this with kindness :) : I do not think your issue is the trading strategy that you are using, but rather the fact that you are risk adverse, second-think your trades, and switch your behavior as the market moves. Regardless of how you trade, those aspects of your personality will remain...