Replies to post #23247 on Cycle Trading

[dotnet]

wow.thank you for that analysis. even i was under the same impression. Saved this info in my folder.

[dotnet]

Is that for weeklies? what's the dte if it's not weeklies?

[farooq]

Higher delta options manipulated more by MM and you need to be accurate in direction to make profit. Both of which required any way to make profit in options.

[Duma]

Forget what I posted yday about options. I did not have good formulas and therefore the data was not good. It didn't take long to see my error when I rechecked the numbers.

So I did another spread sheet today using DOCU and an option of 28 days. And I got what I expected. A higher delta produces a higher profit. And the question that I set out to answer was, "would say a 40% delta option make more money than buying 40 shares (equal risk initially)." That did not change, option wins once prices start to move up.

And of course the BE and crossover points increase as the strike goes higher. Dud, a higher strike means gains will not start to accumulate until the strike is hit.

But it was a good exercise.