Best way to annualize yield from naked puts?

[Put_Master]

My put analysis is based on the underlying stock.
That being,... it's price value, it's financial health, it's price stability, it's potential for recovery during difficult market conditions, it's tech support structure, it's otm safety cushion, ect.... all relative to the "sector" the stock trades in.

That being,... am I being paid an adequate income, for the risk I am incurring, relative to the stock I am evaluating, for the "unit of time" I am considering, relative to the "probability" of the trades success.

Thus, my trade perspective, is different than a money manager, whose goal may be to maintain a somewhat neutral risk balance of his portfolio.
I'm not trying to neutralize risk.
I'm trying to get paid an adequate income, relative to the risk I am incurring, relative to the probability of the trade being successful.

Granted, it is more difficult to accomplish my goals, in such a low VIX environment.
But I have to either accept the reality of the environment I'm working in,.... or step aside and simply wait for a sig market correction and subsequent spike in VIX and IV.
In other words, try and time the market.

 

[oldnemesis]

THAT's IT:

PM is getting the idea.

Jesus Christ it's a miracle!!

 

[Put_Master]

Quote from oldnemesis:

THAT's IT:

PM is getting the idea.

Jesus Christ it's a miracle!!

I never lost the idea.
I've been stating the same thing for years.
In fact, I've been asked to stop stating it so many times.
BTW, my post was in response to CD's post, not yours.
I had not seen yours when I posted it, as we were just 2 minutes apart, and I spent those 2 minutes fixing my grammer during my re-read.

 

[atticus]

Quote from oldnemesis:


(hint: what about Theta?)

It's magic!

 

[Put_Master]

Quote from atticus:

It's magic!

Theta is indeed a magical type of option concept.
Regardless of anything else going on with your stock and trade, regardless of whether the market is even open that day or week,... each and every day, theta is either working for you or against you.
It never actually stops.
You may not always be able to measure the movement.
But it's always there... even if it's a fraction of a penny.
Every day, that fraction is always working for you or against you.
It never stops.
But it actually has nothing to do with the context of the discussion we were having.

 

[sle]

Quote from Put_Master:
each and every day, theta is either working for you or against you.

Yeah, that applies to anything of time-value - accrued interest, for example. Do you lend money indiscriminatingly knowing that you will be getting your interest?

 

[Put_Master]

Quote from sle:

Yeah, that applies to anything of time-value - accrued interest, for example. Do you lend money indiscriminatingly knowing that you will be getting your interest?

The unique thing about theta is, each trader gets to decide for himself, whether it will work for him or against him.
And at what speed.... super slow, regular slow, medium, fast, or super fast.

 

[newwurldmn]

Quote from Put_Master:

The unique thing about theta is, each trader gets to decide for himself, whether it will work for him or against him.
And at what speed.... super slow, regular slow, medium, fast, or super fast.

that's true. I am long some march calls and I decided theta is going to work for me at super fast speed. So I receive theta in them every day.