I Wish I Knew About This Metric 30 years ago

Рет қаралды 28,450

Күн бұрын

Пікірлер: 55

@lobsterstrange 17 күн бұрын

What the reality is when the market goes down it goes down so significant that it wipes out everything in its way on the call side it goes up a lot but in smaller increments in comparison to the movements of a downward market example Black swan events. Any trade that you're in during a Black swan event that's on the put side with bullish intentions is 100% going to lose money

@thomasli2561 28 күн бұрын

Thank you very much. Testing the probability of touch for other deltas and expiration will be interesting.

@mikem511 9 сағат бұрын

This was very helpful you guys got right to the point and gave usable information. Thanks

@michaelwelch103 28 күн бұрын

Wish it used 20 delta option, not much premium in 10 delta.

@paularnold90 28 күн бұрын

Right?? Every other study is classic Tasty mechanics 20 Delta 😢

@Darcsied27 18 күн бұрын

What about probability of out of the money on the put side? Wouldn’t those percentage numbers be a little off also, like POT.

@Matt-px7nm 27 күн бұрын

I sell 30 delta calls 1-2 weeks out against Leap Calls. Roll if price reaches ATM. I have no problems

@joestrmiska6328 22 күн бұрын

What is the strike price of the Leaps when buying?

@Matt-px7nm 22 күн бұрын

Usually around ATM

@Matt-px7nm 22 күн бұрын

I buy around ATM

@Painfulwhale360 13 күн бұрын

can you explain your exact method?

@Matt-px7nm 13 күн бұрын

I find a stock I like with good liquidity in options. Buy a Leap ATM (perhaps 400-800 days out) I then sell 30 delta Calls perhaps 8-25 days out. If price reaches my short strike I will roll it forward to the next 30 delta that will net me a credit. Leaps are good for stocks you may consider to expensive to own 100 shares on. If its a lower priced stock under $30 for example I may buy the stock out right and sell 30 delta calls on it

@ranjancom2000 27 күн бұрын

pls provide the probability of touch 20 delta option on re-entry which is higher

@Millzlane 28 күн бұрын

Well... This is on 45 dte's. 7 dte's are great ❗on the call side

@borcan22 27 күн бұрын

maybe can be useful this kind of study of POT for futures (GS, SI, ES, NG etc)

@yoitired 17 күн бұрын

I discovered POT in TOS, noticed it's usually 2x the delta. Generally I hate selling calls, just hate it, I'll sell puts all day though. Thx for confirming my bias.

@Painfulwhale360 13 күн бұрын

Why do you you hate selling calls vs puts?

@yoitired 12 күн бұрын

@@Painfulwhale360 The way I see it is the short put is backed up by the $0 line so there's my max loss, I'm comfortable taking assignment on puts. But with calls, even if I'm covered and stock rockets through my strike, it's like I took all the risk of owning the stock and sold off most of my profits for peanuts. I'm not saying it's a bad strategy, it makes sense for someone with more capital who wants to make smaller safer returns.

@srinivasdandibhotla5544 11 күн бұрын

@@Painfulwhale360 Currently (or in general) mkt is skewed to go up.

@MBArun-gm8jl 23 күн бұрын

Why wait? The Cortux presale is live, and with everything they’re offering, this could be a game-changer for investors.

@mineralmax 29 күн бұрын

Selling puts mean selling cash secured puts?

@bm9322 28 күн бұрын

Not necessarily. Some people with large enough accounts are authorized for naked puts. The whole value isn’t cash-secured. Margin is used.

@covingtoncreek 28 күн бұрын

@@bm9322 And if you want to look at options on futures things get much simpler.

@go4384 27 күн бұрын

Now that it's posted the market will change directions and make the probability of touch on the put side much higher.

@HectorYague 25 күн бұрын

Well, the study has been done on high Beta equities ( QQQ, AMZN, etc) in a highly uptrending period, heavily skewing the results. Please conduct again with the 11 sectors: XLE, XLF, XLK, etc. Much more representative.