Buying puts safer than calls

[scriabinop23]

Quote from Option_Attack:

Just for fun, here are some quick SPY stats. They are the percent changes from 3rd Fridays for the last 10 years. If doing Condors, keep in mind the marked, greater-than-5% moves:

Third Friday to third Friday changes (at Close) for SPY
[/quote]


Those % changes look erroneous.  Repost with start prices...  Also don't forget to factor out dividends as well.  I forget if on 3rd Fri or end of month options, but there are some dividend days on opex days for SPY -- already priced into options.

 

[newwurldmn]

It's taken into account in his numbers as the stocks are ex-div on the day of expiry and he hasn't added them in.

 

[GregLoehr]

Quote from FXforex:

In general the market goes up, so you would be better off buying calls.

LOL

 

[Option_Attack]

Quote from scriabinop23:

Those % changes look erroneous. Repost with start prices... Also don't forget to factor out dividends as well. I forget if on 3rd Fri or end of month options, but there are some dividend days on opex days for SPY -- already priced into options.

This is EOD SPX data as presented from TC2000. It is correct enough to develop profitable strategies. I've been doing it since '99.

Good trading to all.

 

[blackswan7p]

Quote from Option_Attack:

This is EOD SPX data as presented from TC2000. It is correct enough to develop profitable strategies. I've been doing it since '99.

Good trading to all.

well said

i think it is equivalent

 

[5to12]

Quote from Trader.Fighter:

Thank you for the stats.

Second Thanks. I didn't realize the monthly avg. diff. was so great.