SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Option Strategies
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: robert b furman who wrote (2492)4/19/2023 7:39:40 AM
From: FIFO_kid2  Read Replies (1) of 2591
 
Bob- I guess the latest mini credit crisis as a whole was a major blessing because you were able to make absurd returns on options for taking what I thought was almost no risk after the Federal reserve quelled the fear and this was during a typically a earnings quiet period for most options and usually a much tougher time to find a decent option for consideration. CS DB FRC WAL PACW MCB were my targets.

What pretty much sums up my strategy: Time decay accelerates when the implied volatility falls which happens after a trigger event for the particular company has been resolved and then you move on to the next potential fear event that provides a better use of capital. Win rate is extremely high so far around 95% without even considering a wheel strategy for the few circumstances when the shares are delivered. You also don't have to really read charts or use technical indicators.

If you include the few blowups and cash sweep return I still managed close to 19% per annum since mid 2021 with those dedicated funds that is technically classified as cash. Buffett has averaged 20% over his career.

You could not take this approach to options before the major lowering of commissions for them so its a new approach and technically keeps you in cash during a neutral to bear market conditions and always readily available when the special situation stock or market capitulation opportunities arise.

With the earnings release strategy if you are unsure of the results having a high risk to perhaps being extremely unfavorable for you it is then best to wait for the open on the date of the release for your decision making or to just simply avoid it. While you typically lose some premium in some cases its enough that would be worthwhile and take note the premium in many cases disappears quickly after the open.

Another thing if you are trying to get your feet wet here try it in a simulator. Thinkorswim and other platforms have them. As for taxes it is preferred to use it in a tax deferred account and you escape the daytrading restrictions most of the time and take note if you sell an option on the date of expiration it is not considered a daytrade.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News