A free Trading System that guarantees at least 180% p.a.
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Kind of you to offer this. How does the guarantee work? If it doesn't earn the 180percent will you personally cover the difference?
It is a provable system, everybody can verify it with some basic maths.
Ie. mathematically it is sound, but application in the real markets is a question of its own,
but as indicated in the OP it is IMO applicable if one uses, for hedging purposes, multiple markets (Americas, Europe, Asia).
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Thx. I'll post it publicly here if there is enough demand and interesst.
Some further info about the announced free European Style options selling system with simple hedging (no delta-hedging):
The system, as it will be presented, is a monthly system (shorter and longer timeframes are possible too).
Applying on a stock with historical vola of 40% it makes "only" 9.2% per month; but repeated every month, ie. compounded, that makes 187%/year.
The higher the volatility and/or the shorter the expiration of the option, then even more is possible.
For demonstration purposes I'll stick with the 40% hist vola of the underlying, and monthly option.
It can be proved with any options calculator (I used Black-Scholes-Merton pricing model).
I'll also mention beforehand that it requires that one must buy the stock fully from day 1 on,
ie. the money amount of "nContracts * 100 * StockPrice - CreditReceived" one has to have available
at all times during the lifetime of the option, here 1 month.
I'll post the system only if at least 10 to 15 people show interesst, either publicly or privately, in it.
Or if someone else posts "it", or a system of similar caliber.
(I can't imagine that nobody knows about this simple system. FYI some anecdotal background info:
I only recently accidently (while searching something else in my old notes) re-discovered this system
from my own notes of about 5 years ago when I had started playing with options, and was now very
surprised that I hadn't grasped what I had in the hands then; maybe I was overloaded with the sheer
amount of information as is usual when one starts studying a new thing...)
The system, as it will be presented, is a monthly system (shorter and longer timeframes are possible too).
Applying on a stock with historical vola of 40% it makes "only" 9.2% per month; but repeated every month, ie. compounded, that makes 187%/year.
The higher the volatility and/or the shorter the expiration of the option, then even more is possible.
For demonstration purposes I'll stick with the 40% hist vola of the underlying, and monthly option.
It can be proved with any options calculator (I used Black-Scholes-Merton pricing model).
I'll also mention beforehand that it requires that one must buy the stock fully from day 1 on,
ie. the money amount of "nContracts * 100 * StockPrice - CreditReceived" one has to have available
at all times during the lifetime of the option, here 1 month.
I'll post the system only if at least 10 to 15 people show interesst, either publicly or privately, in it.
Or if someone else posts "it", or a system of similar caliber.
(I can't imagine that nobody knows about this simple system. FYI some anecdotal background info:
I only recently accidently (while searching something else in my old notes) re-discovered this system
from my own notes of about 5 years ago when I had started playing with options, and was now very
surprised that I hadn't grasped what I had in the hands then; maybe I was overloaded with the sheer
amount of information as is usual when one starts studying a new thing...)
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If the markets were continous, ie. 24/7, then there would be no overnight and weekend gaps.
If one can eliminate these risks, and can monitor the position continously around the clock (ideally 24/7 markets),
then the said options selling system is IMO indeed risk-free because then a perfect hedging can be realised.
Now, let's take a look: investment banks and prop trading firms have data lines to all major markets of the world around the clock.
So, these institutions can, and I think they even do all the time, apply similar systems/strategies like this one. But nobody talks about it, of course...
OTOH I've not thought yet about the global implications if with this system every options seller can make guaranteed 180+% per year...
Indeed a frightening imagination...
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If pigs could fly I would need an umbrella 24/7. Are there any markets open 24/7?If the markets were continous, ie. 24/7, then there would be no overnight and weekend gaps.
If one can eliminate these risks, and can monitor the position continously around the clock (ideally 24/7 markets),
.
I stand by my assertion there is no such thing as "no risk".
Especially under uncertainty.
A vendor cares only about benefits.
But a risk taker care even more about risks.
No sain speculator would assume "Zero Risks".
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