High accuracy options update. Finally…

High accuracy options update. Finally watched the DVD. Did not learn anything new but Fishback has found that a 1.21815 standard deviation tends to have the best risk/reward ratio. For those that do not want to do the math that works out to 90% probability of being OTM at expiration on TOS.

This is only for indexes, not individual names. But trading SPY the last 12 months using the 90% OTM short strike then going 3-5 points out on the long with iron condors they had a 300% return on investment and only 1 or 2 loosing trades. I don’t think they adjusted them looking at the spreadsheet, if they had probably would have been 100% winners.

Next week some WDC cc expire/assign in a small account. I will set up a new experiment. SPY 21-28 DTE 1.2 STD deviation iron condors. Add a new cycle each week and let the worthless ones expire. Anything goes ITM will adjust and see what happens. The account only has 6k in it so will see if I can get the same results in a rolling year.

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