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Exactly, it was my first question, I want to adopt your stgy, today I sell 15-20 points spread ,but big quantity . It consumes a lot of capital. Thank you for your answers.
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
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Technicality maybe but selling ES puts is a directional trade, and the reason it works most of the time is because of upward bias of equities. The reason no other commodities allow you to be short options permanently is because no other markets have the same consistent directional bias.
Just wanted to ask if anybody has data to backtest in 2008 environment. I would like to see if ron's strategy can survive such mess. Not saying its going to be doomsday all of the sudden but I thought it would be interesting to give it a thought.
What happened to the options that were sold before the volatility exploded and the market seriously crashed. What happened to the options sold day after the market had a huge drop, etc.
At some point we are likely to have a bear market whether its this year or 10 years from now, I figured if we can assess the likely risk during these times, we can better prepare for it. After all, we had a very long bull market since then.