re: Calling all Traders

quote:

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What do you use to determine the strikes you sell? Delta or income or something else?

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i'd say all of the above..

my goal is for potential profit to be ~50% of what i'm risking..
i like for profit to be at least 1% of my total kitty.
i prefer to risk to more than .5-1% of my kitty on any one trade.

if selling i prefer 45 days or less....not enough time decay longer

buying is opposite.

i dont ignore deltas..
but i simply label buy/sell zones off(quarter/weekly/195m) charts
..and place strikes a below(or above) those zones

...i prefer to stay at least ~1 standard dev (no more than 16 delta) from price.






for naked puts i'll sell exactly at support...
covered calls/dividend capture.. i sell itm

simply by (not) ignoring support&resistance zones imo allow winning at up to 2 stand dev rates while selling 1 standard dev contracts.

at least for me..
is easier reaching financial goals selling uncertainty or binary events such as earnings announcements.

(also) at least for me.. the price for the increased profit potential is much lower win rate(~75% compared to 90%+ you see trading the SPY) and significantly more exposure to drawdowns than i'd prefer.
...but as long as the win rate is over 66%...all is good.


all that said i'm not a pro..
..i'm just a hobo that that spends half his time floating aimlessly on a sailboat.

everything i write may be complete BS.