Covered Call Strategy...
- Thread starter pandorasbox
- Start date
No clue!!!
Just kidding, you don't need to know anything about options or the stock market for that matter to be an expert in chaos mathematics. I doubt Harold Hurst knew how to put on a Butterfly spread
Besides it's not that I don't know about options, it just didn't occur to me to use a short put position to accomplish my goal.
Quote from pandorasbox:
No clue!!!
Just kidding, you don't need to know anything about options or the stock market for that matter to be an expert in chaos mathematics. I doubt Harold Hurst knew how to put on a Butterfly spread
Besides it's not that I don't know about options, it just didn't occur to me to use a short put position to accomplish my goal.
lol, good point I guess... I've gone down the complexity of chaos road and couldn't make it work. More power to you.
It looks like this on a graph:
The magenta bars signal the extreme points of a trend, usually signaling the end of the trend. The blue show extreme non trendiness, often leading to the start of a trend.
there ya go..options have a life and expense unto themselves...if you have a winning formula then just do the underlying...
Why not position yourself in a dividend-paying stock that yields 14% and pays monthly, that trades in a nicely defined channel and write covered call options against that to up your yield to 20-23%, provided the price doesn't rise through your strike price and exercise you back into cash??
The Hurst Exponent is used in a unique and really measures the end or beginning of non linear volatility in a time series. In others words, the magenta bar signals the end of a trend, which doesn't necessarily mean a reversal of the old trend, some times it just results in flat period, which is why it is better suited for options trading.
The signals also have a 'shelf life' of about 20-30 bars, which fits well with the expiration of options.
No, I am not the creator of this thing. The brains behind this is a rocket scientist that is really not a trader, but a real hard core scientist. I do understand chaos mathematics, but not at the level of this scientist.
It's not the 'Holy Grail', just another tool in the tool box, I guess it's like going from a hand saw to an electric circular saw.
What big cap stocks pay 14% div????