Q: How are y'all choosing your strikes when buying/selling options? Do you try to find the returns-maximizing trade? \- about 70% of people I've asked have said smth along the lines of "I look for an expiry date i like with low enough IV across the board, then kinda just wing it on determining strike based on the break-even" (for buying options) or "I look across multiple expiry dates for really high IV to sell those options" ​ \- about 15% said they use spreadsheets, build sensitivity tables, and/or monte carlo simulation scripts to find an optimal trade ​ \- about 15% said "literally just YOLO" \--- I'm building a tool that will automatically figure out the optimal strikes and maturities to buy/sell at, after you input your price target. e.g. This is not my view but let's say hypothetically you think TSLA is worth $520, with +/-$200 at 95% confidence interval .... what puts at what strike(s) should you consider buying to maximize ROI?" https://preview.redd.it/kj7yp227e3q61.png?width=785&format=png&auto=webp&s=22754e4e6116d9a2ca1c1da823ad427cbb588dec This is what the math says: ​ https://preview.redd.it/5eqz6z3n34q61.png?width=513&format=png&auto=webp&s=b26aa8d65092949a21275340b5fb4c9a93728555
author | jehovahwitness |
---|---|
permlink | optimizing-for-maximum-roi-when-choosing-options-strikes-20210331t002043z |
category | walllstreetbets |
json_metadata | "{"app": "beem/0.24.20", "tags": ["walllstreetbets"]}" |
created | 2021-03-31 00:20:45 |
last_update | 2021-03-31 00:20:45 |
depth | 0 |
children | 0 |
last_payout | 2021-04-07 00:20:45 |
cashout_time | 1969-12-31 23:59:59 |
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curator_payout_value | 0.000 HBD |
pending_payout_value | 0.000 HBD |
promoted | 0.000 HBD |
body_length | 1,247 |
author_reputation | -6,298,409,128,946 |
root_title | "Optimizing for maximum ROI when choosing options strikes" |
beneficiaries | [] |
max_accepted_payout | 1,000,000.000 HBD |
percent_hbd | 10,000 |
post_id | 102,712,780 |
net_rshares | -2,793,425,012 |
author_curate_reward | "" |
voter | weight | wgt% | rshares | pct | time |
---|---|---|---|---|---|
rambogoham | 0 | 969,856,252 | 100% | ||
instantcoin | 0 | 801,603 | 100% | ||
cryptomaak | 0 | 2,535,331 | 100% | ||
nelpi | 0 | 2,029,481 | 100% | ||
edward66 | 0 | 115,966 | 100% | ||
ashiqhooriya | 0 | 0 | 100% | ||
bakhtiarzehri | 0 | 20,627,815 | 100% | ||
spaminator | 0 | -4,553,716,077 | -0.25% | ||
amwelisma | 0 | 0 | 100% | ||
psychedelicwolf | 0 | 2,724,766 | 100% | ||
dreamer007 | 0 | 11,568,406 | 100% | ||
kandanmurugan15 | 0 | 837,118 | 100% | ||
deborism | 0 | 47,096,691 | 100% | ||
thinline | 0 | 1,554,302 | 100% | ||
alizain585 | 0 | 0 | 100% | ||
helamia | 0 | 2,005,240 | 100% | ||
louwtjie | 0 | 188,688 | 100% | ||
maria86 | 0 | 5,867,301 | 100% | ||
irwan2778 | 0 | 1,570,673 | 100% | ||
lowlylutfur | 0 | 44,001,565 | 100% | ||
jeevansantoshi | 0 | 2,661,957 | 100% | ||
shihann9 | 0 | 2,921,241 | 100% | ||
adiliasteem | 0 | 849,885 | 100% | ||
hhiep | 0 | 618,811 | 100% | ||
ninjamike | 0 | 8,190,041 | 100% | ||
pincelix | 0 | 657,120 | 100% | ||
duranc | 0 | 2,644,695 | 100% | ||
catwoman8 | 0 | 0 | 100% | ||
goodkarma9 | 0 | 22,247,869 | 100% | ||
diamondrich | 0 | 1,678,680 | 100% | ||
andrei24 | 0 | 19,675,068 | 100% | ||
kshemen | 0 | 4,872,186 | 100% | ||
freerolll | 0 | 1,911,425 | 100% | ||
pegyurme | 0 | 0 | 100% | ||
rotjaeley | 0 | 0 | 100% | ||
khurmi | 0 | 1,068,313 | 100% | ||
aaronteng | 0 | 27,423,026 | 100% | ||
earthshaker | 0 | 157,195 | 100% | ||
silentscreamer | 0 | 84,586,844 | 100% | ||
axbezzub | 0 | 5,889,413 | 100% | ||
evansbankx | 0 | 944,105 | 100% | ||
value2 | 0 | 913,662 | 100% | ||
raghavendra11 | 0 | 14,854,727 | 100% | ||
markusmichael | 0 | 89,942,326 | 100% | ||
jamesgeraghty | 0 | 1,910,756 | 100% | ||
woodenhero | 0 | 0 | 100% | ||
dirtyhippie | 0 | 6,798,073 | 100% | ||
robert.chen | 0 | 0 | 100% | ||
yellthway | 0 | 216,545 | 100% | ||
bitterpill | 0 | 6,075 | 100% | ||
awaisghani | 0 | 0 | 100% | ||
sklkv | 0 | 0 | 100% | ||
jysui | 0 | 6,253,546 | 100% | ||
lovelyboy64 | 0 | 1,290,436 | 100% | ||
dwarfche | 0 | 5,887,356 | 100% | ||
geekdeals | 0 | 0 | 100% | ||
shahidkha | 0 | 2,776,202 | 100% | ||
jk555555 | 0 | 0 | 100% | ||
asrizal | 0 | 68,173 | 100% | ||
saggel | 0 | 2,672,900 | 100% | ||
rscott31 | 0 | 10,215,259 | 100% | ||
jeezz | 0 | 12,031,973 | 100% | ||
kimmysomelove42 | 0 | 49,567,279 | 100% | ||
dildil7401 | 0 | 0 | 100% | ||
bizon18 | 0 | 0 | 100% | ||
buildpower | 0 | 0 | 100% | ||
ringln | 0 | 1,681,940 | 100% | ||
m44 | 0 | 117,868 | 100% | ||
ridu4u4 | 0 | 0 | 100% | ||
jender16 | 0 | 0 | 100% | ||
rodmack | 0 | 1,576,356 | 100% | ||
saddam957 | 0 | 0 | 100% | ||
qiyi | 0 | 108,459,421 | 100% | ||
mayki | 0 | 0 | 100% | ||
digital-life | 0 | 1,215,760 | 100% | ||
eeeps.sh7 | 0 | 2,651,618 | 100% | ||
nelufareasmin | 0 | 2,661,415 | 100% | ||
vampirgarfield | 0 | 4,715,558 | 100% | ||
sasmita2409 | 0 | 0 | 100% | ||
salmanmiah | 0 | 6,196,456 | 100% | ||
ladypink | 0 | 0 | 100% | ||
svenis | 0 | 0 | 100% | ||
amakomtochukwu | 0 | 0 | 100% | ||
tahsinraj | 0 | 0 | 100% | ||
joshuagb | 0 | 0 | 100% | ||
jorx | 0 | 1,308,315 | 100% | ||
daddyku | 0 | 30,237,423 | 100% | ||
blindshepherd | 0 | 0 | 100% | ||
alimirza0416 | 0 | 272,871 | 100% | ||
davv343 | 0 | 0 | 100% | ||
mhmetu | 0 | 0 | 100% | ||
anniieqz | 0 | 103,438 | 100% | ||
tasnia | 0 | 0 | 100% | ||
oluwambe | 0 | 10,587,342 | 100% | ||
joaquinz26 | 0 | 3,440,449 | 100% | ||
micavy | 0 | 0 | 100% | ||
fuckforpeace | 0 | 0 | 100% | ||
jsantiago | 0 | 0 | 100% | ||
leita-rt | 0 | 0 | 100% | ||
ayesha221 | 0 | 2,974,129 | 100% | ||
muizzy14 | 0 | 0 | 100% | ||
francisifegwu | 0 | 181,366 | 100% | ||
mike191 | 0 | 975,896 | 100% | ||
tradermeetscoder | 0 | 2,429,513 | 100% | ||
the-starry-you | 0 | 0 | 100% | ||
magnat6 | 0 | 0 | 100% | ||
mdraju | 0 | 11,016,822 | 100% | ||
mariusclaassen | 0 | 579,662 | 100% | ||
danielrisee | 0 | 3,708,412 | 100% | ||
craigmccleary | 0 | 0 | 100% | ||
mmukul | 0 | 0 | 100% | ||
infinitywhale | 0 | 0 | 100% | ||
elmusicologo | 0 | 0 | 100% | ||
hakim12 | 0 | 11,188,412 | 100% | ||
knowledgeable | 0 | 8,340,196 | 100% | ||
bengal-triger | 0 | 0 | 100% | ||
mediawizards | 0 | 3,519,200 | 100% | ||
kelita | 0 | 21,216,847 | 100% | ||
gamestalee | 0 | 0 | 100% | ||
mariannaz | 0 | 0 | 100% | ||
fatimaah | 0 | 1,800,049 | 100% | ||
abhay.singh | 0 | 0 | 100% | ||
princessebi | 0 | 866,679 | 100% | ||
alvinvoo | 0 | 0 | 100% | ||
ishangsdjkl | 0 | 2,209,045 | 100% | ||
hanishsharma | 0 | 0 | 100% | ||
jumisharma | 0 | 994,625 | 100% | ||
funnelacademy23 | 0 | 624,887 | 100% | ||
givememonsters | 0 | 4,654,735 | 100% |