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Total expected return.

Using my made up examples/numbers - You take in 8 option premium. Lose 6, 4, and 2 on the puts. So you are down 4 overall. Doesnt seem too bad to be down that much when the stock took a truly MASSIVE 60% hit, with buy and holders down that much.

Lol! In fairness I did say I was just making up numbers for the example. Just trying to convey the general logic. Or illogic lol.

Stock is at $10. A $10 put is $2. You sell one. Stock drops to $8. You sell an $8 put, which is now (roughly, to keep it simple) $2. Stock closes at end of option period at $8. You collected $4 of put premium, you lose $2 when then the $10 put is exercised. So you are up $2 still. If...

LOL! Thanks.

My guess... in the money, you get paid cash settlement value at last trade price, at or out of money, POOF. But no idea really, excellent question!

No workie?

Dang, that sixfigureinvesting link is very interesting ET180! Any reason to doubt his numbers? Seems to be CRUSHING the S&P at much less overall risk. I thought edges were hard to come by!?! :)

Just going back through this awesome thread, and I saw this, and I've seen others reference Xela's list before. Curious, was it not shown she was really some guy with a dubious past? If so, her good book list is still valid I hope? Thanks!

Thank you Bum! So is this a true statement - the interest rate charges imposed on people that are long a currency with a lower interest rates vis-a-vis the one they are shorting, are not imposed by any central bank or any other bank, they are just a charge imposed by the broker? Same on the...

Thanks all! Bum, that chart does look scary lol. But I was just using that particular currency pair as an example. So I'm really asking about your #1. The "negative swap fees" and thus interest I will pay - how does that work? How do I determine what those fees/interest would be? It seems...

Never even ventured into Forex, but I love the idea. So I would think an easy way to make money would be to pick a currency that is strong over long periods, pick one that is weak, buy the former against the latter. Say the USD versus Mexican Peso. Over any meaningful period over the last say...

Freaking GENIOUS!!!!!

I am not sure what trader1974 is trying to do - is he just saying hold to roughly opposite postions and buy/sell one of those to go long or short, rather than hold a single one to go long or short? If so seems you would incur additional interest charge that simply buying/selling the underlying...

WAIT. I can get paid to ask questions? Because I can ask a LOT of questions....

My thoughts, anyways. No taxes at all. Win win WIN.

DGLD. Short 1% of your portfolio every 2 days. Continue until account maxed out. After that, let it ride. Come thank Saltynuts for making you rich.

Yes, you ARE the hedge. And "hedging" with cash is not hedging lol. I remember a report, a long time ago, it was about some fund or quant or someone that was going long/short volatility and doing the opposite on the underlying. So long/short VIX derivative or whatever and the opposite...

Just looking at this chart here, hope it shows up: https://www.google.com/search?q=pall+etf&oq=pall+etf&aqs=chrome..69i57j0l7.1696j0j7&sourceid=chrome&ie=UTF-8 That ETF at least seems to trend up for a long period, then drop a good bit real fast, then trend up for a long period again, repeat...

Governments around the world are printing currency at record paces. Any reason NOT to go long hard-core into gold now? Just seems that long term it has to make a killing... maybe the ONLY thing that might make a killing long term at this point...