Covered call strategy feedback

[cesfx]

who is the broker ? also did you take into account the Delta of the option?

Interactive, EU futures.
I looked at the at the money options, same strike of current price. Delta around there is usually around 0.4 - 0.5.
That means that if your stop loss is at 50pips, the option will more or less gain the half of those pips at the level of your stop. And you have to look for a fast fill too, unless you want to trade at market of your bid/ask

 

[arman555]

Interactive, EU futures.
I looked at the at the money options, same strike of current price. Delta around there is usually around 0.4 - 0.5.
That means that if your stop loss is at 50pips, the option will more or less gain the half of those pips at the level of your stop. And you have to look for a fast fill too, unless you want to trade at market of your bid/ask

So if the EURUSD 7 days payout is 60, that means that either the 0.5 lot at 120 pips sl or we can also have the higher profit if the Sell call goes bullish.

 

[cesfx]

Yes it does, but that's another strategy, another payoff... Another story

 

[arman555]

Yes it does, but that's another strategy, another payoff... Another story

lol i was thinking exactly that before posting, and trust me i am not thinking that i have conquered the world. But my prime focus is the compounding and math. usually i see these "it will fail in the long term", "not a sustainable strategy", "eventually will fail" or "its a marathon not a race" lol But i dont understand why that is.... compounding works so fast that couple of hundred trades compounded, in and out of the market.

 

[earth_imperator]

What if I told you "You can know it in advance." ?