The (simple) Secret to Winning | Backtested Options Strategies fo…

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9 thoughts on “The (simple) Secret to Winning | Backtested Options Strategies fo…”

  1. My main takeaway from this was – Even if you trade strangles persistently for 8 years and manage each trade early at 21 dte, there is still a substantial chance that you will loose money. This is very discouraging tbh.
    Are adjustments the key?
    Other studies done on this channel seem a bit misleading now in light of this study.

  2. This is my journey to a T selling options . Trade win rate has always been 65%. It took me a year to translate that into consistent profit and now 2 and half years later I win 80 to 90 percent of my selling option trades. What a journey, learning this

  3. One of the best parts of this segment was at the beginning before the slides when Tom talks about longevity and success! Too bad it was cut out, glad I caught it live. Live episode 10/06/2023.

  4. I will be forever be indebted to you, you have changed my entire life and I continue to preach on your behalf for the whole world to hear that with just a small investment you saved me from going into huge financial debt. Thank you Mrs Desiree Madison

  5. I agree with all the comments saying this is an absurd study, but I would also add irresponsible. Irresponsible to new traders, to anyone that believes what they watch online and to the practice of quantitative analysis. There's no way that a "quant research team" did this mess. Here's a few of the major errors with this:
    It's impossible to quantity without a basis- How much did the traders start with? What size were the trades? If they truly started at a random time, at least one of the underlying % would not be so similar.
    What does "sold options at every opportunity" actually mean? 1,2,3,10 times a day, everyday?
    Why would you cherry pick an 8 yr time frame if the "study" used 16 years of options data? Why 16 years of data?
    FB/META ipo was in 2012- would 100%of traders be profitable if there was a 9 year, 10 year or 11 year timeframe?
    This is just the beginning to the errors in this number jarble.

  6. The thing I recently realized is that it can be beneficial to roll losing trades for a new max profit of a net loss… As long as that loss is less than the loss you were gonna end up with. Helps to keep losses small. Say: SPY @ 429
    Vertical on spy of:
    -1 PUT @ 428
    +1 PUT @ 427
    Let's say it's currently 21 DTE… You're losing (let's say for example: -300$). If you're still confident in your directionality, but not at 428, you could roll to 45 DTE & say maybe like 425 (you'll have to search) but you might not be able to get the to a profitable trade… Maybe post roll the max profit is -20$ It might be good to just roll anyway to keep losses low. Still close at say 21DTE on the new expiry maybe you land at only -100$ instead of -20$ but that may still be better than your -300$ loss.

  7. This was kind of vague. Are we assuming closing at 50% profit? Is there any max loss % that you would close, or would it constantly be rolled at 21 DTE?

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