Backtest results with neutral options strategies on stocks with highest implied Vola ?

[destriero]

 

[destriero]

I'm initially trying to apply it for "EventTrading" (ie. stock has high ATM IV b/c an event is due soon, like FDA decision etc.). For this I'm using a CoveredCall + some LongPuts.

DirtFloors unblocked me.

A CC + puts under CC strike (split strikes) = synthetic bull vertical. Stop it. You don't even know what you're trading. Why would you involve shares when you're looking to short a put spread (bull vertical)?

lol can you even trade this sht in a cash account? I've never had a cash account bc I am an entitled First Worlder.

Why does it depend on account size?

 

[Quanto]

Hey @destriero, you pseudo-acedemic crypto-AH, just accept the fact that not everybody wants to be like you nor act like you, so just be a tolerant good old man, and leave room also for other views & ideas, man!...

And stop discriminating, badmouthing, downvoting others who only have a CashAcct, instead of your belowed fucking MarginAcct. I chose CashAcct deliberately, on purpose, to test whether one can achieve good results also w/o a MarginAcct. It's a field test / experiment.
Someone who argues along such low lines like you do is nothing but a braindamaged sicko.

 

[destriero]

Hey @destriero, you pseudo-acedemic crypto-AH, just accept the fact that not everybody wants to be like you nor act like you, so just be a tolerant good old man, and leave room for other views & ideas, man!...

The why not block again and remain ignorant? I don't think that I want to be me so perhaps you have a point, but do you really want to go through life barefoot, stupid and trading a cash account? Life is short.

 

[destriero]

Hey @destriero, you pseudo-acedemic crypto-AH, just accept the fact that not everybody wants to be like you nor act like you, so just be a tolerant good old man, and leave room for other views & ideas, man!...

And stop discriminating, badmouthing, downvoting others who only have a CashAcct, instead of your belowed fucking MarginAcct. I chose CashAcct deliberately, on purpose, to test whether one can achieve good results also w/o a MarginAcct. It's a field test.
Someone who argues along such low lines like you do is nothing but a braindamaged sicko.

You edit everything. It's annoying.

Why do you use these compound words like they are copyrighted?

Crypto? My DCA in BTCUSD is $380.

 

[Quanto]

You edit everything. It's annoying.

Why do you use these compound words like they are copyrighted?

Crypto?

Just to annoy you Enjoy!
Your silly crypto sentences, to simulate and sound like an "academic AH"
An academic you are surely not...

 

[taowave]

Why the covered call and not short put??

What you are doing appears to be a backspread...

Covered call complicates it unless you feel the stock will become hard to borrow and can take advantage of it.

I'm initially trying to apply it for "EventTrading" (ie. stock has high ATM IV b/c an event is due soon, like FDA decision etc.). For this I'm using a CoveredCall + some LongPuts. Here's a recent example describing it, see also this related posting there.
I also found some other similar constructs, like those posted under this thread, the new constructs begin here.

Regarding diversification: of course the more stocks you can use the better. IMO best is not to risk more than 5 to 10% of AcctValue per stock (meaning 10 to 20 stocks, less with smaller accts); depends much on acct size.

Regarding DD: sorry I haven't tested it yet b/c I think one cannot simply generalize the result if not tested on the whole market. But testing on the whole market is nearly impossible to do for a single trader b/c of so much data to test, and it would be very costly to get that much data from commercial data vendors.
I think only a company with a team of good programmers can afford to do such costly tests.

The tests on some carefully select stocks show me that it works, but one first has to find such good fitting stocks as not every stocks with high IV gives good results.
Of course one has to skip pennystocks etc...
Best is if the stock has weekly options.

 

[destriero]

Why the covered call and not short put??

What you are doing appears to be a backspread...

Covered call complicates it unless you feel the stock will become hard to borrow and can take advantage of it.

CC and a lower strike LongPut. How are you arriving at a backspread?

 

[taowave]

I thought said lowercstrike putS

Its a straight up Vert??

He did say

For this I'm using a CoveredCall + some LongPuts

CC and a lower strike LongPut. How are you arriving at a backspread?

 

[destriero]

Hey @destriero, you pseudo-acedemic crypto-AH, just accept the fact that not everybody wants to be like you nor act like you, so just be a tolerant good old man, and leave room also for other views & ideas, man!...

And stop discriminating, badmouthing, downvoting others who only have a CashAcct, instead of your belowed fucking MarginAcct. I chose CashAcct deliberately, on purpose, to test whether one can achieve good results also w/o a MarginAcct. It's a field test / experiment.
Someone who argues along such low lines like you do is nothing but a braindamaged sicko.

Are CashAcct-holders a protected class? Thanks for woking me.



































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