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)

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