![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEifuh1ToYKhkc7xTnodXgQ4vcRPJXgA9GFXLBT5KLdvyqg47HbVXlLmL6x2qGIOWq1nsavi9FhVq040JxH76k0BHdIx-7wxQ86aIDdSqw0sz6ziHabNw7oyoK21rql5ZZ9fOWDx/s400/Q+study2.bmp)
The results are quite stunning and support a high probability gain in the Qs for the coming month. The study also has important implications for those that prefer to hedge their bets with buy/writes as the OTM calls with maximum premium decay and minimal downside risk become more attractive. The study also suggests a strangle strategy selling puts and calls with the puts slightly below the current strike and the calls considerably OTM.
I haven't had a chance to look at the relative costs of simply buying ATM calls out 2 months. . . that will also be a topic for further investigation.
Over the next few days, as time permits, I'll be running similar analyses of post quarter performance for the DIA and IWM.
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