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Yes, you just meant 450 per SHARE, not per contract. 45,000 is a lot, but if you sold 100 different contracts on GME and 99 different stocks I think 45k would be relatively speaking much smaller in comparison to what you gain/lost on them all cumulative. But, if you are a small time player you...

"Just 1 contract at the peak of 493 you would have loss 450 per contract or 45k assuming the straddle can be sold for $23." Wait, what? you say ONE CONTRACT at peak 493 you would have lost 450 PER CONTRACT, which makes sense, but they you say or 45k? How do you get to 45k total when you say...

But the "unlimited upside" risk should be priced into the call you sell, compensating you for that. And such upside risk should be limited anyways because you would have to be NUTS to go all in on one stock or even a few stocks. If you are writing options on 100 different stocks even a...

I was a finance major and graduated with a 4.0 in 3 years. Few in the world probably understand IRR as good as I do. But I'm asking how to calculate it (or other appropriate return on investment parameters) with mixed positions including shorts. But thank you for your snide comment.

Thanks newwurldmn. So they how would you calculate your return on investment in my example? Not just how much you made (that would obviously be $15), but how much you made vis-a-vis your investment, as a percentage return.

But you'd be OK selling a put or call alone, just not together? Just seems weird, when you get 2x the premium but less (and possibly way less, depending on the strike price you set) the risk?

2x the option premium and expected long term gain, less than 2x the risk, all very generally of course.

Yea, I totally agree I have not data to support my claims. But what I am saying is that selling straddles is LOGICALLY, INHERENTLY superior to selling either calls or puts alone. It is a theoretical exercise. Compare a seller of straddles to EITHER a seller of a call or put alone. How much...

Let's say I go long one security, short another. I go long security A at $10. 3 years later its price is $20. I got short security B at $20. 3 years later its price is $15. How would you calculate IRR (or whatever alternative metrics you want) on those positions combined? Would it be a net...

Explained it in another thread - whichever way the underlying breaks you are using the other guy's that bought the legs (which guy depends on which way it breaks) to offset what would otherwise be your losses.

I'm not a HUGE option guy, but I know my way around. And I see absolutely no alpha in this system. You are just trying to time the market, and you will ultimately fail. Just sell the short straddles, roll if needed, profit, day in, day out.

Ahhh, shiat, sorry to see he passed. His book, while kind of silly, was still a pretty good read from what I remember.

Ha, that's the one ph1l! But noooo, the system in the first book (from what I remember) is nothing AT ALL what I am talking about. His system, if I remember correctly, was something like you put X percent of your money into the market up-front. He originally suggested 50%, but then I think...

I hear you kmiklas. I've got to do some back testing to find out. I have no back testing skills other than Excel, so Excel here I come!!!

Wholly crap, I might have actually read that book, at Book Stop, a little bit every day before I went to the gym next door, in college! I was looking for a book I read years before that, like How I made $1 million in the stock market, by Nicholas Darvis or something like that. I picked this...

Thanks kmiklas, all very helpful. What you say makes sense regarding it ultimately coming down to buying some distance from standard deviation. While in my mind I'm just buying or selling when I think price movement in an asset is unlikely to be reflective of that asset's true value (changes...

Wow, looks great for trading, but I sure hate holding those highly leveraged ETFs for long periods given their high decay rates. I'm thinking more of investing here, holding for the long haul. Definately in an uptrend, however!!!

Let's face it, they are winning, and will win. They will be the #1 superpower soon, and their growth will continue bigly because they got their shiat together, unlike the U.S. and so many other countries. So, how best to invest in China? Can one invest in the Chinese market directly? If so...

Thanks kmiklas! On the fees, I'm not too worried about that, I use IB, and they are virtually nothing (and I think you can get IB light or whatever and they are nothing, but they are almost nothing as it is). The market moving is definitely something to worry about. If for example, I put in...

bump for my question on jumbo monitors!!