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Don't get too excited. Trading is not as easy as it looks. I lost money for 3 years selling options before I started to regularly make a profit every year. Mainly because I wasn't far enough out of the money.
Been trading 14 years total. Selling options 7 years.
I read stats that 85% of traders lose money. Somebody is losing the money I make.
Hey spj77, wow from one side of the world to another. Spj77 can you give me an example of ron99 66% rule for example with a hypothetical 100,000 account thanks mate. There is a dude to the west of me a mate to the east of me life is good.
Maximum 34,000 Initial Margin required for all positions. 66,000 cash in reserve. If you have less than 66,000 cash you shouldn't add any more positions.
For the more experienced traders, I reduce the excess per position for positions that are near to expiring and still far OTM.
For example I have Feb 1200 GC puts. 4 days from expiring. I don't carry any excess for that position. I use excel spreadsheets to keep track of excess per position. and excess per account.
The sooner excess is freed up the more positions I can add.
Sure thing.
Right now the CL 75P expiring on 15 March is bid at $80 premium. This option has a delta of .0187 per my data. Current OX margin 615, therefore with premium of 80, total margin + excess = 2085, fees 6.5, 49 days held equates to an annualised ROI of 26.3%
Yes I did mean that ron99 about all your far out of the options not going into the money, ron99 during the financial crises of 2007 to 2009 how did you trade those markets for example oil was at 147 and went all the way to 30 something after it shot back up to the 90's even then your otm options woudnt have gone in the money? Cheers.
I be conservative in my calcs and add the premium in as well, and then try to seek > 25% annualised return initially, which as you say will in effect be more over time as the margin free's up