So was this was one of those meaningless, very S-T % return trades I discussed earlier?
How long on average?
But either way, without knowing the details of the trade, it's risk, it's prob, it's sector, time frame ect.... it lacks context.
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Seeking advice on writing (and covering) short options
- Thread starter noregrets
- Start date
How long on average?
But either way, without knowing the details of the trade, it's risk, it's prob, it's sector, time frame ect.... it lacks context.
Quote from Put_Master:
So was this was one of those meaningless, very S-T % return trades I discussed earlier?
How long on average?
But either way, without knowing the details of the trade, it's risk, it's prob, it's sector, time frame ect.... it lacks context.
Feigning stupidity? It was over the quarter and consisted of dozens of trades. The account never took more than 3.2% in heat. All of the trades are in the journal and all fills were marketable.
30% for the quarter.
120% annualized.
You are the "atticus".... not the rule.
120% annualized.
You are the "atticus".... not the rule.
Quote from atticus:
I only look at risk adjusted returns. I look for 5x so 10x is probably unsustainable.
Atticus: Forgive my ignorance. It seems one could do very well with a risk/ loss like this. A 200 batting average would keep you in the game indefinitely and 300 or 400 your golden. Do you have to go far out of the money to achieve this? Or do you cut loses quickly? Thanks
Quote from phili:
Atticus: Forgive my ignorance. It seems one could do very well with a risk/ loss like this. A 200 batting average would keep you in the game indefinitely and 300 or 400 your golden. Do you have to go far out of the money to achieve this? Or do you cut loses quickly? Thanks
Could you elaborate on the "FOTM" comment?
Quote from Put_Master:
Would you seriously annualize a % return on a one day trade?
How about two?
I never annualise the return on individual trades because I see that as meaningless. I have a column that annualises the daily return, which I hardly ever look at. I do pay more attention to the annualised number on weekly and especially monthly summary sheets.
In any case all it tells you is if you manage to continue what your are doing, that is what you will end with, ie pie in the sky.
Quote from phili:
My thinking is FOTM (maybe a daily std. dev. or 2) would be necessary to risk 1 to make 5. I guess Iâm thinking about flies with my comment and thatâs why I directed the question to you. Just trying to learn.
I guess I'm all wet. As I think more about this... no need to go FOTM. Why risk the entire debit? I choose what to risk, so give it a reasonable amount of time and cut out if my 1 to 5 is being violated. It's like trading stocks but there is more forgiveness.