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Ok, I see how being closer to ATM the risk profile is different. (I had edited my original to mention my usual 20 delta range.)

@beerntrading I am a little rusty on my premium selling (mostly buying prem in this low vol environ) but on a CS if you have a SL if your short strike is violated and stick with proper trade management where is the "wipe out account" fear coming from. Note..when I do trade CS it is OTM 20...

@Saltynuts just my 2 cents. If you are new to options trading and just starting to get comfortable with the mechanics, the VIX is a relatively complex underlying to trade options on.

@comagnum while you may not define it as such, your points are quantified by probability study.

or a version of the EIC (earned income credit)....sorry, but as indicated by me and others earlier, this is not new territory. all very basic macro theory that has been debated for many years.

where do the free sites such as stockcharts.com get their data ?

At or in-the money options with a longer expiry will also work . With potential benefit of convextivity.

Have studies been done on the differences in the mathematical probabilities of success in predicting direction of the underlying between different GENERAL trade set ups ? If so, any information on the results or sources would be great. Ex : trend continuing/break through. Vs Reversion...

Thanks, that's pretty much the expiry I use. Follow up...concerning stops, do you use a percentage loss on the option contract or a technical level on the underlying ? Thanks

@speedo @swingtrader123 Are you using options as the vehicle for the swing trade ? If so, how far out to expiry/DTE ? Thanks

Hope your elevator pitch is smoother than that !

With a 69-1 win loss ratio and a 8-12% ROI on each trade averaging 35 trades per month that must be some track record.

Maybe I'm missing something but with all due respect what is novel or new here ? The pros and cons of this type of structural change in the tax system is covered in every Economics 101 class ever taught.

lol, it was YOUR analogy. And maybe a good one, I wouldn't commit to holding any investment for the rest of my life.

and.....where is VHS (the one who "won") now ???

Lol, was just thinking the same. Unless something blows by 930 ,why not just get long for no other reason than that it just keeps working ! (Although chart on spy looking a little shakey, but then again, that's not new either and we end the week up.)

You have some good points. But the company administering the ETF is not a risk.

The yellow flag being put up by some is that "low-vol" trade (long consumer cyclical and/or staple) is very crowded and a lot of the investors who are long are not going to take it well when any vol hits the sector.

You are absolutely right, but how many on ET do you think know the Sharpe ratio of their portfolio ?

@Pelt.. With a 98% win ratio do you mind sharing your systems expectancy ? Just curious, thanks.