21 min listen
97: Expected vs. Actual Win Rates When Selling Options [SPY Short Strangle Backtest]
97: Expected vs. Actual Win Rates When Selling Options [SPY Short Strangle Backtest]
ratings:
Length:
25 minutes
Released:
Jun 8, 2017
Format:
Podcast episode
Description
Show notes: http://optionalpha.com/show97 Today we're going to use our new Trader's Toolbox and options backtesting software to test win rates when selling options. Because the truth is many people have this huge "rub" with options trading and expected vs. actual win rates. They assume that if we place a new trade with an initial probability of success of 70% that the trade will win at exactly 70% over the long-term. As you'll see today, that's just not the case when you account for the implied volatility premium inherent in the options market. So tune in as we look at two different SPY short strangle backtests.
Released:
Jun 8, 2017
Format:
Podcast episode
Titles in the series (100)
OAP 006 : If Every New Trader Did This 1 Thing They'd Make More Money: In this session of The Option Alpha Podcast I'll show you with real data why if every new trader was doing this 1 thing different they'd make more money. Plus I'll relate this to how why casinos have table limits because they know that limiting how... by The Option Alpha Podcast