Options

Terms

CoCH (Cash on cash return)

CoCR shows the actual return a trade generated on the cash you had on the line (risked)

CoCR = Return / Capital required x 100

EG: $150 (return) / $5,000 (capital required) = 3.0% (CoCR)


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Trading strat

TP at 70%

SL at 150-200% of premium received

apply the 21 day rule

Andy strat

target 3% per month

wheel strategy

delta around 0.3

position size under 10%

Delta selection

0.10 Delta = Lower premium, higher probability

0.30 Delta = Balance approach

0.50 Delta = Higher premium, higher risk

 

Stop loss

Write an option for $1

Stop loss at $1.5-$2

 

Take profit

Buy same option you wrote but at a cheaper price