How to make money writing option spreads by Dr spreads

[Trading Education Buyer]

Here is a result of a formula to beat the option formula .The option formula is a zero sum formula , at a given point in time .By trading several spreads , combination of entries , exits on spreads , you derive at a formula to beat the option formula.

SEE RESULT ON EXPIRY FAR LEFT COLUMN

 

[sysdevel99]

Ok - I'll bite - care to share more (what you are doing - how you derive profits with an overall 0 sum outcome) or is that the extent of your post?
Also what's the significance of formula 3 and 4 - and the market price ? How does time and volatility factor into this?

 

[Trading Education Buyer]

Ok - I'll bite - care to share more (what you are doing - how you derive profits with an overall 0 sum outcome) or is that the extent of your post?
Also what's the significance of formula 3 and 4 - and the market price ? How does time and volatility factor into this?

Formula 3 and 4 were discontinued because you need extreme volatility to make money .I like to trade 2 and 3 months options , waiting for the premium sold to evaporate to virtually nothing , then buy them back and rollover to following months.When selling options , the secret is to cover your risk with spreads.

2 and 3 month options offers the best premium to risk ratio , patience to sit and wait is more important .

Volatility is historical multi year volatility , so you need to do your calculations.

There is also formula 7 , on far right of excel , but you may not see it , it adds to the figures on the left.

Highy volatile instruments pay 4 % a month for volatility or more

So why do I post here ?To be asked questions to make me think.

Selling options premium is an edge , only if you know how to don it succesfully.

 

[Trading Education Buyer]

HERE

How to buy sell option /futures , without all the psyche issues of trading

all formulas,result on far left ,gives about 80 % a year from premium decay

This is like nourishing treacle tarts

 

[Trading Education Buyer]

Now take a look at this calculated risk taking , It is on a real account produces about 7000 ticks every 2 months , from premium decay.

An account size of 30,000 ticks is used , and it is making 42000 ticks a year. That is 140 % a year .

You can see why I don't need to be on forums stuff and occupying and eating up valuable time of real traders.look at column on far left.Why do real profitable traders want to be around losers and fakes?

 

[Trading Education Buyer]

compound it every month

The consequences of giving away the holy grail

 

[Trading Education Buyer]

I have invented this mathematical formula to beat the option formula, and created an edge.

When Thomas Edison was interviewed by a young reporter who boldly asked Mr. Edison if he felt like a failure and if he thought he should just give up by now. Perplexed, Edison replied, "Young man, why would I feel like a failure? And why would I ever give up? I now know definitively over 9,000 ways that an electric light bulb will not work. Success is almost in my grasp." And shortly after that, and over 10,000 attempts, Edison invented the light bulb.

"Our greatest glory is not in never falling but in rising every time we fall."
~ Confucius

"The essential part of creativity is not being afraid to fail."
~ Edwin Land

"Every great cause is born from repeated failures and from imperfect achievements."
~ Maria Montessori


"I don't believe I have special talents, I have persistence … After the first failure, second failure, third failure, I kept trying."
~ Carlo Rubbia, Nobel Prize winning Physicist

I have had a hard time in finding this formula , I have spent 30,000 hours looking for it.
People like you would have been laughing at edison's failure

 

[Dael]

I have spent 30,000 hours looking for it.

Say you spent 40 hours a week for formula searching. It's approx. 2000 hours per year, so are you saying about 15 years of constant search process before you done with it? True?
And what's the point of this thread? Are you selling anything? I'm interested, by the way.

 

[Trading Education Buyer]

Say you spent 40 hours a week for formula searching. It's approx. 2000 hours per year, so are you saying about 15 years of constant search process before you done with it? True?
And what's the point of this thread? Are you selling anything? I'm interested, by the way.

Firstly I don't sell anything , because there will never be and trust in who transfers the cash first or the hands the total formula first , either of us is going to double cross on receipt.Not looking for buyers.

The option formula is a zero sum game , but it is not have a zero sum formula when applied to multiple strategies /spreads / formulas using calendar spreas and different other different combinations.The multiple formulas , with multiple entries , exits can give you a very nice edge.I don't disclose my formula to you

Yes 15 years of searching , traded forex ,options , futures , oil , stocks , indexes and penny shares.True , that is why I know all about a lot of things .I have made very high probability mt4 eas = automated programs , custom indicators and hundreds of trading systems for manual trading .

I went to trade them , hired humans to trade systems .I found they failed and I failed at day trading , swing trading and automated trading with very high probability systems.So this is my knowledge and my conclusion after reading 3 years on trading phsychology and experiencing , watching seminars on phsychology on youtube , that trading sitting in fron of a screen is extremely difficult , this where most will fail.This is a human phsychology handicap.

Moving on , I decided to devise a formula for a set and forget strategy , which would eliminate the phsychology handicaps of the human mind in trading.You can go to phsychology section and read all my threads on phsychology , plus a few more that I will write in the future.

I wrote formulas to buy , sell options and futures combined , but it took a long time to put it all together , in live market testing and conditions.My thinking behind the combined formulas was "How do I write/sell options premium , and buy them back after depreciation of time period of options , thereby gaining profit".

I worked on how to manage risk and avoid the pitfalls of writing options (writing risk rewad is poor , unless you can do a combination of option spreads).This is what I have done .

You can create your own excel sheets , like above and work on making your own strategies , of spreads and making your own system .This was to show you my imagination .You can also see from my excel sheets , what is possible , so don't let the amateurs and losers discourage you , learn from winners who inspire you and can show you the potential.

In this thread , you can download a free high probility trading system and see for yourself.

https://www.elitetrader.com/et/threads/technical-analysis-dax-signal.303564/

In this game no one trusts the other , so no deal.I hope you understand , if trading was easy brokers would be giving you money to trade as an employee.They don't.

 

[Trading Education Buyer]

great trading is boring , it is sittting and waiting for sold options to decay and give profit .