Hi Pattellee, There are a few chaps here who are serious option
traders but my sixpense worth is that I will be buying 0.9 deltas
with 2 weeks to expiry. That way the 2-3 day period expected will
show the highest return. Also the 2 weeks would be safe from too
much theta(time) decay. However if later testing shows longer
average periods for the trades we may have to go out a bit further
in time. Obviously the best thing to do is sell calls (sell
signals) or puts when buy signals are given with one week of time
to run or even 4 weeks to gain more premium. This could be a
problem unless you have quite a large trading account. I am working
on my trading plan for all these considerations and would be happy
to share with you when done.
Hi Pattellee, There are a
Those of you wanting more reversion to mean systems trades - the volatility systems will add a ton
Posted by mundy on 5th of Jun 2023 at 08:48 pm
Hi Pattellee, There are a few chaps here who are serious option traders but my sixpense worth is that I will be buying 0.9 deltas with 2 weeks to expiry. That way the 2-3 day period expected will show the highest return. Also the 2 weeks would be safe from too much theta(time) decay. However if later testing shows longer average periods for the trades we may have to go out a bit further in time. Obviously the best thing to do is sell calls (sell signals) or puts when buy signals are given with one week of time to run or even 4 weeks to gain more premium. This could be a problem unless you have quite a large trading account. I am working on my trading plan for all these considerations and would be happy to share with you when done.
I went with the 0.64
Posted by patellee on 6th of Jun 2023 at 12:34 am
I went with the 0.64 deltas this round but I'll keep that in mind in the next round so a little less upside but ok with that in the beta stage.