Something is wrong with these numbers. For the $30 OTM you can't have take profit at 25% of max profit and get average $100 and something. Or $179 in high IVR. you don't get that much premium. So something is deeply flawed in these calculations.
The premiums are not as high as to get $100 at 25%. That means you have to collect $400 at least and since $100 (and more) is your average, that means more than $400. There aren't premiums like that. Unless you are talking 1 or more DTE
Yep. I think for most options strategies the strikes should be chosen delta, not by $. Today $20 means one thing tomorrow ill be very different. First delta will reposition itself on the dollar scale from just changing IV. But also if the index goes up let's say 30%, everyone has to recalculate $20 x 1.3 ha ha. Perhaps a good idea for tasty live as it goes further in this research work to start doing everything with Delta not $
for almost all your TastyLive videos Please increase the volume. You can hear alright with a bluetooth headset, on the phone. BUT the volume is way too low on a PC.
thanks guys for sharing your wisdom.
Something is wrong with these numbers. For the $30 OTM you can't have take profit at 25% of max profit and get average $100 and something. Or $179 in high IVR. you don't get that much premium. So something is deeply flawed in these calculations.
The premiums are not as high as to get $100 at 25%. That means you have to collect $400 at least and since $100 (and more) is your average, that means more than $400. There aren't premiums like that. Unless you are talking 1 or more DTE
True..
You completely lost me. After you mangled up dollars and deltas I had no clue what you were talking about.
Don't think there's any mention of Delta in here.
Yep. I think for most options strategies the strikes should be chosen delta, not by $. Today $20 means one thing tomorrow ill be very different. First delta will reposition itself on the dollar scale from just changing IV. But also if the index goes up let's say 30%, everyone has to recalculate $20 x 1.3 ha ha. Perhaps a good idea for tasty live as it goes further in this research work to start doing everything with Delta not $
for almost all your TastyLive videos Please increase the volume. You can hear alright with a bluetooth headset, on the phone. BUT the volume is way too low on a PC.