Back test what? Just add up all the premium. Bank.
What Option Strategy Do You Use?
- Thread starter ironchef
- Start date
Sounds interesting. Can you give some more info and explain the process?
The risk you professional traders refer to is volatility not risk of ruin. A volatile stock with high drift will be less risky if given enough time.
I think you can backtest QQQ vs SPY, DIA with 30 year running windows to see my point.
Let's say your option is in the money at $100 a share and you have the right to exercise but don't want to for whatever reasons and want to exercise a year from now. You sell a 1 yr call above $100 and use the proceed to buy a 1 yr put below $100. Net cost zero and your gains will be bounded by those two strike prices.
what is CSP ？
Cash-secured put
writing/selling/shorting a put with enough cash in your account to purchase the stock if assigned.
Sell enough garbage puts and volatility will become risk of ruin.
Speaking for myself,when the market proves me wrong,I am out of time
Speaking for myself,when the market proves me wrong,I am out of time
That really doesnt count
Guys who had conversions on made 100 per( as opposed to .05 today) selling the long put to Merril ..
100 conversions made you 750k -1 mil plus, depending whre you bought in the short call and sold the future..
Did you trade in 1987?