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Ok, so we basically said the same thing. I referred to the final result (after multiplying 4.08 by 3.46) and you referred to the 3.46 itself. Thanks for the clarification.

I multiplied the monthly STD (4.08) by SQRT(12) and the result was 14.14%. Could you please elaborate how did you reach 3.46? Thanks.

I strated this thread after I initially didn't get specific responses to my questions in other forums (I also stated it in my original message). As my questions relate to very specific issues, and as I didn't know in which forums I can find people with knowledge in this subject, I wanted to...

Thanks. If I want to annualize the 4.08% STD would I multiply it by 12 and make a square root to the result (so it would be 14.13%)? Also, I want to make sure that the Sharpe ratio is usually calculated based on the annualized STD figure (and not the monthly STD figure). Please correct me if...

I would appreciate any response to my follow-up question, thanks.

I would appreciate any response to my questions, thanks.

Could you please see if my calculations are correct given the data that I mentioned in my examples? I ask because I'm really not familiar with such calculation, thanks.

Hi, I have questions regarding calculating standard deviation and Sharpe ratio with respect to a stock portfolio. I know it does not necessarily relate to options but I asked in other forums and I didn't received yet concrete answers. 1. Is a standard deviation of a stock portfolio generally...

Hi, I have questions regarding calculating standard deviation and Sharpe ratio with respect to a stock portfolio: 1. Is a standard deviation of a stock portfolio generally expressed as % (i.e., by measuring the deviation of the stock portfolio's return from its average return)? For instance...

Hi, I have questions regarding calculating standard deviation and Sharpe ratio with respect to a stock portfolio: 1. Is a standard deviation of a stock portfolio generally expressed as % (i.e., by measuring the deviation of the stock portfolio's return from its average return)? For instance...

Hello, I have questions regarding calculating standard deviation and Sharpe ratio with respect to a stock portfolio: 1. Is a standard deviation of a stock portfolio generally expressed as % (i.e., by measuring the deviation of the stock portfolio's return from its average return)? For...

Yes, this is the way I want to look at it, thanks. I just thought there may be any specific formula in this regard, but it seems that I should make my own calculations based on the rationale you mentioned.

Although the most theta decay occurs near expiration, it may not be relevant to my question, as it relates to maximizing return on a position that was NOT opened near expiration. Therefore if 80% of the premium was decayed after 50% of the time has passed, then anyway I will not be able to earn...

Of course the time issue is taken into account (see my previuos response in this regard). But I am trying to find a rough guidance regarding the premium decay, or any concrete formula that takes both the premium decay as % and time remaining as % and comes up with any accurate result as to when...

I encountered cases in which the premium that was decayed as a percentage of the original premium was much higher than the days that have passed as a percentage of the total days until expiration. So even if it will not be exactly as the situation I described, the rationale is still the same and...

IMO the price of a put option with the same expiration date and time as your limit order and with a strike price which is equal to your limit order price can give you a rough indication regarding the value of your limit order, as such put option is essentially a limit order to buy the stock and...

Hi, I have a question regarding option's premium decay when selling cash-secured puts (similar to covered calls): as I understand, the option's premium decay is non-linear, so that the percentage of the option premium that is decreased by each additional day is not equal. Thus I am trying to...

The question is mainly about if a DITM put at expiration would ever not get exercised for whatever reason. Given that margin requirements will not be an issue that may prevent assignments (as I understand from the responses so far) can there be any other reason due to which an exercise will not...

Especially considering that there are brokers who have stricter margin requirements than others.

I am asking about "at expiration". I thought that the "before x-div" example may occur not only regarding an early exercise but also at expiration that is on the x-div date, but I may be wrong. However, I just want to understand if put holders may have any limitations whatsoever on...