/biz/ - Business & Finance

>>19073085
Never trade naked contracts, word of advice.

Preferably I'd sell an OTM put ( With a prob.ITM / delta value of 65-80 ) as well as having 45-30 days till expiry. As well, purchasing another OTM put with a cheaper premium crediting my account. Let time decay and IV overstatement benefit you, and actively manage the trade ( ie don't let it just expire ) since you could end up turning a decent profit before expiry, which is what I usually do anyways. That's just a brief synopsis, there's other aspects to determine if the trade is a winner from the start with simple calculations but using probability of contracts expiring OTM and a large amount of trades at that allows one to average to a profitable position, albeit slowly. It might seem like I repeat myself a lot when it comes to strategy, but it's just because I don't stray off the beaten path of my methodology. As I've said before, it's all about having an emotionless methodology that you can follow step by step.

>>18960428

45-30 Days till expiry (Again I'm an options seller primarily so have that in mind) with an average holding period of 22-27 days, and sold before 15~ days till expiry to capitalize on time decay. And yes weeks and months, I place multiple trades with different expiry dates to have a consistent amount of contracts expiring (since It's my means of living this has to be a part of it) It's a "rolling effect" that most people who trade options for a living do.

Regarding Calls/Puts, Balanced.

https://www.youtube.com/watch?v=A-nTVuOaAjo&t=1292s

This video explains the balance you're questioning with calls or puts, when you read a options contract table you'll see how Calls/ Puts are reflective of one another pricing wise, so it's only in your best interest to put yourself in the middle of the market with balance. Staying in the middle of the market it key, which is defined by Beta - Weighting.