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Who trades the vix? Why does options discussion always come down to the vix or indexes that move like mollasses? The only money to be made in options is high volatility stocks 0-5 dte. Any farther out and it's like watching an entire basketball game when you might as well just watch the last few...

I think I'm blocked again because I can see you replied with a screenshot but no reply. Perhaps I should start a topic about this bug?

Any stock with high IV...etf's preferable of course but usually worse return on capital. EW is about swings...if I am to collect a weekly premium I am going to have to sell puts that I expect will be assigned in the current swing. Yes I could go out farther, but usually the weeklies offer the...

That's the only true edge in stocks...time and money. Check out my post showing the returns for buying spy at the aths highs and averaging down the entire decline.

It's not a fail until you realize a loss...currently it's just a premium earner. It's no different than investing in a dividends stock...but you get paid for the volatility. For the record this wasn't an EW trade...just traded the expected short term move. Aka an educated guess. :)

I'm not referring to indexes or to parity. These are all machinations based on a flawed premise. I am talking about options being most expensive when they should technically be least expensive based on the probability of a reversal/IV crush after an expected move. If you are buying home...

All I'm saying is the skew makes an itm option cheaper relative to its price otm....which emulates an option becoming cheaper after an expected move...in other words trend reversal probability is factored into options prices indirectly. However, it does not account for the sudden IV crush that...

They may not factor it in directly in the model, but it does emulate it via the drop in IV from otm to itm.

I am referring to options pricing factoring in the probability of a drop in IV after an expected move, which they do via the skew. For example the MARA 20 strike call is 1.06 (104.61%) and the atm strike is 2.07 (101.78%). Even though the atm is more expensive, it is less expensive relative to...

As Bollinger states times of high volatility is followed by times of low volatility. If this is true then the pricing model should factor this inevitable drop in volatility (price) during times of high volatility. The options can still increase in price, but should increase relatively less as...

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There is no added risk. It is opened with a credit and lowers your break even. If the stock continues down then you suffer the same losses as you would have anyway...except without collecting any premium. 21.37-17=4.37 21.37-19=2.37*2=4.74 ? Anyway, apparently with the stock repair strategy...

Yes I told you extended C's are how I get MAX position and therefore MAX profits! Mcmillian was the first book I read on options...I forgot it has all the handy math. :)...working through Natenburg. I don't mind hedging risk without realizing losses such as with stops or long puts etc. Short...

So I was thinking of trying out the stock repair strategy on one of my positions that is currently -pnl. https://optioncreator.com/sttf2b7 My spreadsheet version is showing that I will break even @ $19.88, but on option creator it is showing the break even around $21. I'm assuming the premium...

So was I right????

That was percolating in my brain...t is time decay so the put emulates the time decay/extrinsic value of the long call!

I use $ more than delta...$0.80 minimum is the (Weekly) strike I pick. No early assignment, just @ expiry. It is usually around .40 to .55 delta. I always take the shares.

I corrected my post to call it a dynamic stop. :) Wait how does long stock, long put mimic a call option? If price goes down put goes up...but the call goes down.

Selling puts carries less risk than just buying stocks because you are receiving premium to offset the risk.

Short puts because you are getting paid to be wrong...its essentially a dynamic stop loss. :)