... so 1 hr before closing...

cool... just reminding ppl in case they didn't realize why you keep saying 3am... trading market open and close need more skills yeah...

i used to chart n trade a lot... but stop liao 5-6 yrs... my youngest wanna learn, i tot id start her with options... but decide after their study lah...

nice... can explain a bit about your automation? im trying to do the same... thanks

which broker are you linking your bot to ?

are you building the bot from scratch or is it a commercial bot that you configure and program to your strategy ?

got many stock trading automation out there, for options i know of options alpha... so just curious how are you doing it...

thanks

This post has been edited by dwRK: Sep 26 2024, 08:16 AM

awesome man...

proper risk management is to find a stock that has high IV... this gives you the premium headroom... then pick a strike that has low probability of success/ITM, as a seller this is what you want... imho around 40% ITM is sweet spot...

even better if one has some basic TA/charting skill...

collateral required depends on the underlying... doesn't have to be huge

curious... how often you close it out early vs letting it expire?

yes... In The Money... i wrote "low probability of success/ITM"... brokers will calculate and provide this info... so 40% here refers to this probability...

as a seller you want the option to expire worthless/OTM... probability of OTM (per my example, 1-40%=60%)... but not all brokers will provide this info directly...

lets just say... ITM, ATM, OTM... be like >,==,< ...

no idea... they are similar to stocks/etfs... i.e., directional play... you bet up or down...

problem with all these 3x 5x 7x stuff is they have decay from rebalancing... imho, good for intraday or 1-2 day swing only... might as well just buy calls and puts...

quite a lot are just trading them intraday or short term... they are not holding to expiry... also you only see 1 side of it... the person may have a 4 leg strat going...

classic protection for stocks in a bear market is to buy ITM puts... so somebody is definitely selling ITM puts...

well i guess end of my 1st sentence and 2nd sentence "or short term... they are not holding to expiry..." covers what you just said...

cheers...

80-90% probabilities

sop is quite standard... i know more or less what you are doing... just that bro Hansel dun believe

you pick 80-90% and let it expires... i pick 60-70% and close early as required... with charting can pick more aggressively for higher premiums... different strokes for different folks...

all the best mate

is quite simple... Ramjade picks a strike price that gives him 90% probability of winning... he still has 10% probability of losing... these probabilities are calculated using black-scholes or binomial or other methods well known in the options world... given a large enough sample size or trades... he will eventually have 90% winning... this is just statistics at play... but i dun know how many trades are required to achieve parity

what he doesn't do is pick IV rank or IV percentile... these affects the options price/premium... and gives someone an extra edge... instead he picks stocks he wants to own long term... and supplements it with options trading... imho this is not ideal but i understand...

if a normal "investor" is someone who just buys and sells a stock directly... i would call Ramjade "investor plus"... who buys and sells stocks indirectly using options... he is not doing anything dangerous afaik... so i never kacau him on options matter...

to help you understand why market direction (bull/bear) is not so important to options...



each stock has its own "character"... the options pricing model captures these as the "options greeks" and plots the probability curves as above... let say the outer parabolic lines are 10% probabilities... if bullish, it has a 10% chance to reach the top lines... and same for bearish the bottom line... obviously news events will disrupt the normal behavior temporarily but eventually it reverts back to normal...

all these are pretty standard for options... you can ask bro TOS... he probably spent a semester or two studying it...

anyways, have fun in SG...

made an oopsie talking about Ramjade's winning...

come rain or shine he will be selling either a weekly put or call... so it is in fact 100% in this regard... 90% probability would refers to the option expiring OTM in his favor... and the other 10% doesn't mean he is losing....

for fun paper trade to blow water... ... 1 dte, after ernings... imho conservatively better...



could have tried harder than 3.5... prices spiked to 8!... lol


anyways...

absolute price doesn't matter... just need 100 shares for security blanket...

not doing any pmcc ?

This post has been edited by dwRK: Apr 28 2025, 07:11 PM

at least 100k...

no longer weekly