I calculated a max intraday drawdown for the Multi Entry System (40%/20/20/20). This would put some money into perspective, and help as an illustration.

I substituted SSO for SPY, and used a $50,000 position. This would be close to equivalent to a $100,000 position using SPY for the Multi Entry.

The Max Intraday Drawdown for the System occured on March 6th, 2009.

1st Entry: $20,000 position at a price of 17.70

2nd Entry: $10,000 position at a price of 17.31

3rd Entry: $10,000 position at a price of 15.75

4th Entry: $10,000 position at a price of 15.43

SSO hit a low of 14.16 on Mar 6, 2009.

Here's what the intraday drawdown would be at 14.16: -$4,000-$1,819.76-$1,009.52-$823.07= -$7,652.35

The largest drawdown occurred on March 6, 2009, intraday low of $67.10.  If you look at the Trade History, you can figure out the $/% drawdown.  BTW, that trade turned out to be a big winner for both the single-entry and the multi-entry version.

Ihbdsb it wasn't me who did the option study. I do trade options, but personally am not buying options for this system.

However I do agree with you, that selling puts vs buying calls would be the way to do it. You'd really have to watch your position though, if selling naked.

.....Susan