Hi blackhole,
its a interesting research you are doing. i just wanted to know which according to you is the more reliable (the least loss making) strategy. profits are OK even if they are small.
for example in a test period of 1 year can you list the no of losing months of each strategy.
short straddle - 3
iron condor - 2
short strangle - 1
its a interesting research you are doing. i just wanted to know which according to you is the more reliable (the least loss making) strategy. profits are OK even if they are small.
for example in a test period of 1 year can you list the no of losing months of each strategy.
short straddle - 3
iron condor - 2
short strangle - 1
I tried playing with option way back...failed miserably....tried lot of stuff failed....even today there are many ways to place a trade n that can help u with that.....strategies work well with timely ,adjustments or profit booking.
for instance u r bullish n u place bull spread after 2 days market did not behave as expected n due to some indication u placed bear spread....say u used call n put for the said strategy...now the market again failed to behave as expected it gave in to 3rd posibility (range bound) AND U already have iron condor.....now market start to pick u some direction but u already earned enuf from ur spread so u decided to book profit and take a fresh position based on fresh view.
some people might go for all the legs of iron condor on one go and based on market conditions they might keep only winning side like bull spread or bear spread.
say u have 1,2 or 3 continues months of uptrend or downtrend......u might love u go for iron condor as premium received will be good coz of high implied volatility and if market stays ij range or consolidates for a month u would earn on it....
Volatility kills-virtually all the short selling strategies but if placed well help u wiN.....
historically.....highest % of winners can be achieved using sell of strangles(over 2sd otms)
Sell of straddle has highest % of ROI. work well when Sold on High IV.
Iron condors works well with management of it...yes success rate is good if managed properly ROI is low.
Hope this helps n Did not kill ur precious time
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