Stock repair strategy

wxytrader said:
It's not a fail until you realize a loss...currently it's just a premium earner. It's no different than investing in a dividends stock...but you get paid for the volatility.

For the record this wasn't an EW trade...just traded the expected short term move. Aka an educated guess. :)
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MTM is all that matters. Realized or not, piker.
 
poopy said:
MTM is all that matters. Realized or not, piker.
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That's the only true edge in stocks...time and money. Check out my post showing the returns for buying spy at the aths highs and averaging down the entire decline.
 
wxytrader said:
That's the only true edge in stocks...time and money. Check out my post showing the returns for buying spy at the aths highs and averaging down the entire decline.
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Well then you were slam-fcked, suburbanite.

You're carrying a large loss and loss of opportunity. That $3 22C four months to exp is now trading $0.4 so your wheel methodology of trading around a ticker just got rekt.

You check your gibberish.
 
poopy said:
The only thing worse than your knowledge on the subject is your stock selection.
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Any stock with high IV...etf's preferable of course but usually worse return on capital.

poopy said:
You forgot Elliot Wave.
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EW is about swings...if I am to collect a weekly premium I am going to have to sell puts that I expect will be assigned in the current swing. Yes I could go out farther, but usually the weeklies offer the best return on capital.

poopy said:
Well then you were slam-fcked, suburbanite.

You're carrying a large loss and loss of opportunity. That $3 22C four months to exp is now trading $0.4 so your wheel methodology of trading around a ticker just got rekt.
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I received $1.20 for the short 23 weekly put I was assigned. Current 23 weekly call is selling for .04! :(
So obviously I am looking farther out here...aug30 23 call is @ .53 x 1000 shares = $530...add that to the $1855 collected since July19.
= $2385 / 42 days*30 = $1700 per month return on 23k. That's a 7% monthly return. If I adjust to only selling monthly calls at this point being otm I would still avg around $500 per month on the position or 500 * 12 = 6000 + 1855 = 7855 annually/12 =654 monthly.

poopy said:
Well then you were slam-fcked, suburbanite.
You're carrying a large loss and loss of opportunity.
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That is a 34% annual return on capital...not sure that any dividend stocks or most traders can out perform that. :)


BTW I have backtested with just selling atm calls no matter what the assigned strike and it returned profits based on the last 365 days. So can make it a mechanical trade and do ok or hold longer and possibly do even better...or worse.

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P.S I found that a hedge fund is actually using a version of this strategy!

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How many suits did it take to come up with the same concept I blasted out on a google sheet one afternoon? :)


(The max risk of course is bk...which is why I limit capital allotted.)
 
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