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What was the market on the option before you placed the order?? How wide was it relative to the stock price?? Did you place a market order or limit?? Forget about greeks for now..Your execution got ya..

That makes alot more sense

Hmmm..why wouldnt you. Buy stock at .50 and sell the .50 call at .50??

I would strongly recommend you read a couple of good books on option trading.. Poking around will give you just enough knowledge to get smoked

What option books are you reading ??

Interesting that Dest buys the 5 Delta call when he's already long 60 delta's..

early assignment on a short call can only be good,not factoring in dividends,tough to borrow stocks

I answered your question .Tell me why you would exercise a call early assuming no dividend

Assuming no dividend,why would anyone exercise their call early?? Worse case scenario,you get assigned and are in a synthetic put (short stock long call).. Not sure what the margin is.. You can always exercise your call to get flat,but that makes no trading sense

Is this a joke that I am not getting?? Buy a stock at 100,collect 5% of notional on the call and watch the stock go to 70??? Lose 25%,look for another stock with no upside and rinse and repeat?? What happens after the 4th time of rinsing??

Chef, how do you define "amateur" retail??

Best bet is to check out a good option backtester like Orats and run simulations..The proof will be in the pudding.

Who has a ready to go service ?? Im interested

There was a backtester/optimizer called Stratasearch which is no longer around...You could throw in as many rules as you liked with money management,and it would run thru hundreds of thousands of permutations and of course curve fit...More often than not,the exact opposite of what I believed...

Well said...I can not understand why anyone would choose to walk into the "Octagon" without having sparred first...

The very simple answer to your question is backtest your "beliefs",walk it forward and you should be on your path.The answers will be in black and white.Easy,is it not??? I can only speak for myself,but if the method of trading that stands out is not in my DNA,I have a bear of a time sticking...

There are many ways to measure skew,but for simplicity you could use (25 Delta put IV - 25 Delta call IV)/50 Delta IV You could simply subtract the IV's,but I like to normalize the values.. There are many other methods,but I like to keep it simple.. You will need historic values to put...

If it makes you feel any better,I couldnt do what you do in 10 lifetimes..:)

Hi,Im still formulating what it is that I would really like to see...As i mentioned before,I am a when running options simulations,I prefer to see equal delta comaparisons,1 90 delta put vs 2 45 delta puts..With that said,if I was going to run a basket like you did,I would probably equal weight...

This shit is pure entertainment..Loved the trailer. "was a passive investor and barely knew about futures and just happened to be with ToS when the market crashed. I am a quick learn and got a hold of it trading 1 lot in March, then 3 lots, 5, 10, 20 etc. Now I trade 200ish every few hours on...