The EDGE of premium decay

Trading Education Buyer

Trading Education Buyer

The stock market edge is one edge I showed you

https://www.elitetrader.com/et/threads/edge-of-buying-the-stock-market-dip.304496/

There is an edge in writing options for premium decay on Indices like S and P , Nasdaq , Dow , Dax , Ftse etc etc etc

https://www.elitetrader.com/et/threads/calendar-spreads-option-opportunities.304672/

I will show you soon.

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it's not a secret. all hedge funds use this strategy. If you want to be insurer of the markets...that's fine...just be ready to pay out once in a while.

the majority of the time...markets do nothing. there is an inherent bias to short premium.
 
Trading Education Buyer said:
The stock market edge is one edge I showed you

https://www.elitetrader.com/et/threads/edge-of-buying-the-stock-market-dip.304496/

There is an edge in writing options for premium decay on Indices like S and P , Nasdaq , Dow , Dax , Ftse etc etc etc

https://www.elitetrader.com/et/threads/calendar-spreads-option-opportunities.304672/

I will show you soon.

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This is no edge whatsoever. You might think it is, but then the masses that do it think they have the edge as well. (They don't)
 
JackRab said:
Yeah, it's not an edge... it's a fact.... time decay is a fact... doesn't mean it always works out.
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True ! But you can get someting close to an edge , if you appply it to stock indices .A true edge is present , before any trade is placed .Over a series of trades , rather than a single trade , it does become an edge.

You need to learn advanced trading and rollover your losing position , that adds to your edge.There is an edge over a series of trades .

Five fundamental truths:
1. Anything can happen.
2. You don’t need to know what is going to happen next in order to make money.
3. There is a random distribution between wins and losses for any given set of variables that define an edge.
4. An edge is nothing more than an indication of a higher probability of one thing happening over another.
5. Every moment in the market is unique.
– Mark Douglas
 
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