best length for selling a weekly option?

ironchef said:
Are you sure you will get an extra 1.5% selling DOTM CC?

Yes, according to studies, ~80% of options expire worthless, so probably > 95% of DOTM will expire worthless.

https://realmoney.thestreet.com/stocks/options-expiration-day-reminds-us-time-really-is-money-16118647#:~:text=Options contain two components, intrinsic,market closes on expiration day.

Most retails write CC & CSP, if 80-95% expire worthless, most retails must make money? Yet 90% of retail option players lose money:

https://www.linkedin.com/pulse/9-out-10-traders-lose-money-fos-nilesh-sharma#:~:text=The futures and options (F&O,understanding of how it works.

I hope you are the 1 in 10 exception, selling DOTM CC.
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Most customers lose money because they take profit to early but they don't cut there losses...
Professionals let the winners run (add positions) and cut there losses..
 
dorietrading said:
your stocks are delta 100, so if you dont close them at delta 50 your profit is going down if the market is going up any further. If you roll them the new delta will be much lower and you profit again when markets go up. If they go down you have some protection...
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I have to read again the older postings, b/c I was thinking you mean just the options.
 
Just an observation: the initial posting is much different from the title of the thread.
Also the title itself is misleading when it says "best length for selling a weekly option?"
Aeh... what? :)
It's frustrating to attempt to read & understand such badly worded postings.
Please add some more quality to your postings. Thx.
 
Last edited:
ironchef said:
Are you sure you will get an extra 1.5% selling DOTM CC?

.
.
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I am not sure. I am trying to learn as much as I can so I am not the 90%. I am learning different strategies also. What strategies do you use?
 
Quanto said:
Just an observation: the initial posting is much different from the title of the thread.
Also the title itself is misleading when it says "best length for selling a weekly option?"
Aeh... what? :)
It's frustrating to attempt to read & understand such badly worded postings.
Please add some more quality to your postings. Thx.
More...

Yes, my error, I meant to say, best length for selling CCs.
 
2rosy said:
Look for where the premium collected is greater than the probability of expiring itm
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What formula or method do you use to compare them (ie. premium and pITM) to each other for making such a decision?
 
2rosy said:
Look for where the premium collected is greater than the probability of expiring itm
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I have two formula's I use.

1. I like the annualized gain/prob. of expiring ITM > 1
2. probability of expiring OTM + annualized gain > 100%
 
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