Search results

i saw where you ae going to possibly buy the upside wing and be short the weekly vertical...You really want to sell a cheap vertical to finance a leap??

ok....By purchasing a long dated put,you are long vega...You should have some idea of IV percent rank,and what the range of 1 year ATM vol is....Without looking closely,you are buying stock and a long dated ATM put..You are synthetically long the call,lets say a delta of .60..You are attempting...

Wait...you said you are going to sell weekly calls to offset the "put"..what ratio are you planning to trade, I.e. how many weekly's will you be short?? What's the IV range for 1 year vol?

Without looking,Vega is your concern

What parameters did you use?? How are you defining positive risk reward??

All you are doing is buying a 1/23 130 call and selling garbage against it..Are you ratioing the upside?? Is vol 1.5 years out exceed8ngly cheap,and if you can't answer that,you shouldn't be doing it

Not too sure he's right in hindsight. The stock is lower and going thru a re-org...not sure where he is going on that one

I'll leave that to re-org/high yield studs such as yourself..:)

I was in the ratio writing business,but not at these levels....

Not sure if the OP was talking leverage in the manner you guys are..He seems to be looking at stocks where the IV % rank is above 90.....

FOOK NKLA!!!!! Lets get in on Rivian!!!

Quick backtest over the last 10 years shows that by selling the 50 Delta put,it does exactly as you would expect...Half the return,lower Sharpe,far lower Sortino.. The lower the Delta put,the worse the return.Trading legal delta's will produce a much larger max drawdown,and no real incremental...

Your post is sweet,but you are really making a case against leverage.. Take a systematic approach to selling whatever percent spot of put you like on a custom basket,index or whatever floats your boat and compare the returns/vol if returns vs the long position in the underlying...

You really cant answer the question without a decent backtest and somewhat disciplined strategy... Where I 100% agree with you is that selling OTM puts will obviously not outperform the underlying in a market like we have experienced the last 10+ years. Bear minimum,you should be selling delta...

I liked their method of coming up with price distributions and expected values based off matching price data and 30 day implied.....

Hey Chef,just curious.How do the fundamentals/ price charts help you decide which options to buy??? Are you talking DTE, strike,spread or not or all of the above??

Sounds like you didn't walk foward and there may be a bit of curve fitting going on..I would walk it foward ortakeit with a grain of salt

Read Momentum Masters...or not