who is dumb enough to sell weekly calls on SPX/ES
- Thread starter tradelosses
- Start date
what happens when you have a situation like 2013 where you have low volatility and the market keeps going up. ..what do you do then
you would have to backtest it. IMHO the 20% OTM yearly leaps may be worthwhile if you get a huge rally like 2013 or 2009 or 2003 once in awhile. I think the expected value is positive even with all the down years. Also may be good to combine it with selling a deep out of money put to cover premiums
Do you have access to a PnL graph? Use it.
There are put options and there are call options.
You can buy them both, or you can sell them both, or you can buy one and sell the other, or sell the first and buy the other, or buy/sell puts, or buy/sell calls, or different combinations of this. Til the cows come home. Shake and bake, rinse and repeat.
If you can't make money selling options, take a sick day, go home and sleep.
Take a vitamin B, get y'self a white board, and start drawing this stuff out.
Find a 12 year old and try to 'splain it to them.
Really. If you are having troubles, use your imagination, and rework what you got.
A hoe is a great tool. Unless you need a gravel rake. Then it sucks.
The market is a garden. Use the right tool for the given plot you're in. Or expect a lot of dead shit.
There are put options and there are call options.
You can buy them both, or you can sell them both, or you can buy one and sell the other, or sell the first and buy the other, or buy/sell puts, or buy/sell calls, or different combinations of this. Til the cows come home. Shake and bake, rinse and repeat.
If you can't make money selling options, take a sick day, go home and sleep.
Take a vitamin B, get y'self a white board, and start drawing this stuff out.
Find a 12 year old and try to 'splain it to them.
Really. If you are having troubles, use your imagination, and rework what you got.
A hoe is a great tool. Unless you need a gravel rake. Then it sucks.
The market is a garden. Use the right tool for the given plot you're in. Or expect a lot of dead shit.
Just wanted to make it clear,
you never know the person's intentions on the other side. pros use multiple legs and try to achive the best risk reward ratio, whenever you see option selling it almost never ends there.
I'm talking about weekly calls over the space of a 5-10 point move on the SPX. Not the whole week.
SPX rises 10 points, IV skew will rip threw the calls prices.
Like trying to swim up a waterfall.
ever done any anylysis /back tests on buying calls on spx weekly/monthly , at a support after oversold /fall and selling at the same time sell a call at the money on weekly /monthly?
