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Good thread,and you are asking all the right questions. You have the risk side of the equation down,but at the expense of making money..Thats OK,and much better than swinging for the fences and ignoring risk.. I had a feeling your size would be a one lot spread regardless of Delta...Others may...

Why follow Canslim/IBD and trade a 5 point put spread for .90? If you are dead right,you will make 48 bps on strike. I fully get your thinking,but all you are doing is maximising the likelihood of making money,not actually making money... Let's,keep it simple.How many 5 point spreads would you...

Lol...I don't think you truly understand what I am currently doing.Its exceedingly mechanical with zero opinion on what I am trading. I'm arbing a small inefficiency until it disappears

Not sure who Dustin is nor what style he is trading.I Never have big days,but I grind out apx 5k per day.I just looked at my account,and it was actually over 40 days (not 20)with zero risk. If I have one skill,it's being a very good market maker.I know before every trade,if my bid his hit or my...

Ok...Im not terribly comfortable posting numbers when things go well as I do believe in a bit of humility... In the last 20 trading days I have made 32 to 38 percent(500k devoted to the trade,will go up to 1 mil plus as I am at max margin due to number of options) It's not a home run to...

I would post my numbers,but you wouldn't believe them,and I do not run the stats you do. I make markets in low Delta options, have only momentary execution risk,and never have losses other than marks or my residual position I put on for a credit going to zero. On the residual positions I...

His max drawdown is 4x the S and P this year.. He will be in deep doo doo

That's a good point. If you run a short put backtest on a basket of large cap names it's clear that to need to sell DITM puts to match stock returns.. Obviously in a runaway bull with lower IV, buying stock is the way to go. The fact that OP generates a significant portion of his PL from stock...

Hey,you are clearly having a great year,assuming return is on cash in the account and you aren't leveraged above 2 to 1 .. I wasnt coming after you,but it's odd that the bulk of your returns comes from short puts you were assigned on that you then sold calls on..

It's a forum,there is no harm in questioning the obvious,especially in an awesome thread

How,can you congratulate anyone who makes the bulk of their money bring wrong?? He's wrong on a short put trade,gets assigned,then sells an "unidentified" call in the hole,which would have to be up or out to be "the biggest" gains.. Doesn't compute....

LOL!!!!!!!!! I better be on the starting 5... OP still needs to explain this one.Hes "put" on the stock,but tells me I am WRONG saying the stock must be lower..Swiss cheese till then.. The biggest gains have come from holding stock while waiting for it to be called away.

What exactly are you saying?? Which OTM Credit spread are you referring to?? Are you saying an OTM put spread,or are you saying short an OTM call spread and long stock?? Give me the details,I'll backtest

19.8 at 20.40 is,fairly tight relative to 2.30 at 3.1.. With 10 percent plus protection on the longer dated call,you will hopefully not have to adjust as much and cross bud offer Do you execute the trade as a buywrite (at a net price) What's a poor man's covered call??

I dont look at volume,but I do look at the bid offer spread.. I looked at you 9/17 175 and the market was 2.30 at 3.10.. Thats 30-40 percent wide..The stock is 10 cents wide... Thats a shitload of edge to give up... I would quote the Buy write or sell the put,but no worse than mid

Your broker should have that.. Typically they have some measure of IV 30 (continuous 30 day implied) and customizable period HV.. Market Chameleon has all sorts of vol measures as does Orats which is my favorite..

You are quoting Options Animal and option repair?? Dude,quit while you are behind :)

Oh boy.. You need to read a basic book on options and understand synthetic structures and their equivalants.. You are way off

As you know,a covered call is no different than a short put.As Mr Muppet pointed out,the implied vol should be higher than realized or your forecast vol. Just as important,are you gettingg an acceptable rate of return should you be called away.How does that compare with the provided cushion on...

Not long..I NEVER let the market get away from me.One click mid,if that doesnt work I ll step up once and then lift the offer...Im assuming the markets are fairly tight,if not,I would take a good look at the slippage as it relates to vol points or Percent of what you were hoping to make