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    The “Daily Call” From Option Alpha

    Join Kirk Du Plessis on The “Daily Call”, created and dedicated to you, the options trader, stock market investors or trading wannabe. This is your daily dose of actionable advice, tips, and strategies to help you learn how to generate and earn income investing with options.

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    Latest Episodes:
    #650 - When To Sell A Call Option Jul 03, 2019
    Show notes

    Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we're going to be talking about when to sell a call option. A short naked call option is a very basic option selling strategy whereby you just simply sell a call option at a strike price that's either at or above where the underlying stock is trading at the time. Now, again, it's a little bit more of an advanced strategy in the sense that it carries a lot more risk than a traditional spread that you might be trading. With a call option strategy where you're short the option contract, you're going to be carrying a lot more margin and you have undefined risk given the fact that the stock or underlying security could continue to rise against your position in the future. Therefore, of course, we always suggest you keep these option strategies to a minimum and balance them out with other existing neutral and other existing bullish strategies in your portfolio.

    All that being said, when we sell a call option, we generally want to do so after a dramatic or a quick rise in the underlying stock price and we would like to have some confirming technical signals that would suggest that the stock is now overbought or is reaching an elevated or extended level that might suggest the stock is going to go sideways or start to turn over. We would absolutely not look to sell a call option at the bottom of a stock move, after a stock has had a significant down move or a selloff, given the fact that it could rally and return back against our call position pretty quickly. If you are going to look to sell just a single naked call option on something, look for something that's had a really quick overextended move higher and sell a call option, preferably something out of the money that also gives you a little bit of a buffer just in case the stock does continue to move higher against your strike price. As always, if you have any questions, let us know and until next time, happy trading.


    #649 - Non-Stop, Relentless Trading Jul 02, 2019
    Show notes

    Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we're going to be talking about nonstop, relentless trading. And this is really kind of a dovetail from the previous daily call that we had about why we don't filter trades for Trump tweets, but it seems like there's always going to be a reason for you not to trade. No matter what the catalyst is, a lot of people get sucked into this fear hole of not trading because of some external factor and it always changes. And over the last 10 plus years of doing this at Option Alpha and kind of showing what we do and blogging and talking about it, I always see that it changes. It used to be because of the market crash stuff, and then it was housing, and then it was tech or the FED, and then it was the election, and then it was Trump, and now, it's Trump's tweets, and now, it's tariffs, and I mean, the catalyst always changes and it's always a reason for you not to trade, but I would suggest and I would push to be as relentless as the waves when it comes to trading, that you continuously trade all the time in every market environment. Yes, you scale back when you need to scale back. Yes, you scale up when you need to scale up, but you don't ever quit trading because what we know to be true from the research and our own experience as well, is that the more you trade and the higher your trade count goes, the more stable your total expected outcome is going to be. You're going to go through periods of drawdowns. You're going to go through periods where you have amazing trading months and that's just part of trading, but you have to keep it up, so that you get to the point at which you're making hundreds and hundreds of trades over the course of your career which helps stabilize your win rates, your expected outcomes, etcetera.

    Be as relentless as the waves. Waves come at you constantly. They never end. You can sit on the beach for hours and days. The waves never end. You have to weather the emotional highs and lows of trading and continuously place trades towards your goals. Nonstop trading makes market direction, timing, Trump tweets, tariffs, all of it meaningless. We've talked about this a number of times before, but it's worth repeating. If I were to give you just one single day that you could place all of your trades for the next 10 years, how important does that one day become? It becomes everything. It becomes everything and it's the most important day in your life for the next 10 years because if you get lucky enough to place trades in the right environment, at the right time, where the probabilities just happen to fall perfectly in line, then you end up doing really well. But what if that one day becomes just the one day before a black swan event, the one day before another Trump tweet and tariff is announced? Then that one day sets you up for failure for the next 10 years. This is obviously an extreme example, but it proves the point that if that one day becomes really, really important, then does giving you two days help reduce the importance of that one day? And the answer is yes. If I gave you two days in the next 10 years to make trades, well, then each day becomes a little bit less important because it's spread out over two days. What if I gave you five? What if I gave you 20 days? What if I gave you 100, 300, 200, 500, 1,000 days? As you start trading more and more, market direction and timing becomes meaningless because yes, you could mess up and have just a random day where you just made a trade at the wrong time and the market went against you, but if you've made 1,000 trades, does that one day really matter in the grand scheme of things? No, it probably doesn't. That's why you have to be relentless with your trading. Hopefully this helps out. If this does, let us know. I'd love to hear your feedback on social media, everywhere at Option Alpha and until next time, happy trading.


    #648 - The Surprising Positive Correlation Between Bonds And Stocks Jul 01, 2019
    Show notes

    Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we're going to be talking about the surprising positive correlation between bonds and stocks. Now, really quickly before we even get started with this, if I were to tell you to build just a very simple diversified portfolio, what intuitively would be some of the things that you would add? You don't have to reply out loud right now unless you want to and you can talk to me through the radio or the headphones, whatever you're listening to. But many people would immediately say stocks and bonds and in fact, this is probably Wall Street regular lingo 101, that you should have a diversified portfolio of stocks and bonds. And while this is true to a certain extent, what we've actually found in our research and many other people have found this, but we've just confirmed this as well with our research, is that stocks and bonds actually have a surprisingly high correlation to one another and a correlation that would suggest that stocks and bonds actually don't move in inverse to one another as much as people would think. In fact, they actually move in a very high positive correlation to one another which would suggest that they don't have as much diversity benefit as maybe something else.

    When we went back and did a lot of research on correlations, so that we could find these uncorrelated tickers to build out with our portfolios, what we found is that when you look at a symbol like TLT which is 20-year maturity bonds and you create the correlation between TLT and something like IWM or SPY, what you end up finding is that TLT and SPY have a really high correlation to one another, almost higher than a lot of other things that would seem intuitively like they would be correlated against each other. Our research actually showed that the correlation coefficient between SPY and TLT was .63. That means that on average, these things are actually moving in a positive correlation to one another. A correlation coefficient of zero would suggest that there's almost no correlation between them, that a move in SPY is no interference or reaction to a move in TLT. But the fact that they actually have a very high correlation suggest that they actually move pretty much in lockstep most of the time with one another. Yes, the magnitude of the move might be different, but there's definitely not a negative correlation that would suggest that when bonds move up, stocks should move down. They're actually highly positively correlated.

    The reason this is important is because what you think and what you hear that might be the best thing for you when you actually look at the data and research suggest that some things are not what they are presented to be. When you hear somebody say, "Oh. Well, you need a portfolio that's created with stocks and bonds." Well, does that really give you diversification? I mean, it's better than having one versus the other, but is it really giving you the diversification and the uncorrelated assets that you really need in your portfolio? When you actually look at something completely different like TLT and silver, so the correlation between TLT and SLV which is a silver ETF is .0025 which means there's almost no correlation between them, that they actually move completely independent of one another and they rarely, if ever, move in the exact same sequence together. It might be better to have let's say silver and bonds in addition to your stocks versus just stocks and bonds.

    Hopefully this again, kind of like peeks your interest. We'll be publishing a lot of this stuff in the coming weeks on Option Alpha, especially for our members who have already seen this. We did this a while back, this kind of uncorrelation research and published this for our members, but we'll be sending it out to everyone else, so you guys can take a look at this in the coming weeks. As always, if you have any questions, let us know and until next time, happy trading.


    #647 - Swamps, Rivers, Options Trading? Jun 30, 2019
    Show notes

    Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we're going to be talking about swamps, rivers and options trading. You might be thinking to yourself, "Kirk. What on earth do swamps and rivers have to do with options trading?" But the reality is it has a lot to do with options trading and I promise you, after you listen to this podcast, you'll definitely get the concept or at least you'll get a really good visual that you can use moving forward for your own trading purposes.

    What we're actually really talking about here today is we're talking about habits. Habits are super important for traders and definitely important for investors because habits are like little small strands that accumulate into a really big, strong band or rope over time. Every time that you perform a habit, you're reinforcing that habit in your subconscious mind. Your brain is wired to reduce friction and power and usage and what it's trying to do all the time is trying to figure out how to take the most mundane activities that you perform and create a subconscious habit loop or cycle. A lot of research, if you actually go out and look at this, it's really cool to see, but research around habits has shown that when you actually perform a very consistent habit and ritual, your brain gets so good at doing the actions and the sequence of movements in your body that it's almost indistinguishable day from day, so things like brushing your teeth, tying your shoes, putting on your shoes, getting dressed in the morning, if you're a woman, doing your makeup and your hair, getting into your car and turning on the ignition. These loops and habit sequences that we go through are so good that from day to day, it's almost indistinguishable what day it is because the brain has been so good at performing these over time that it does it totally without our involvement. Like when was the last time that you consciously thought about how you brushed your teeth, the actual sequence you used? Do you brush your bottom teeth first or do you brush your top teeth? Do you go sideways? You don't even think about it. You just do the sequence of movements to brush your teeth or tie your shoes the way that you've always done it before. And so, this can create in the world of trading and investing, a really, really tough mindset or habit loop to break out of. If you've been investing for a really long time and you've been trading stocks or you've been an index investor or a dividend investor, it's really hard to break these habit loops that you are currently in because your subconscious mind is trying to get you to do things that are familiar to it. That doesn't necessarily mean that they're good things for you. We know that habits can be really bad for things like drugs and alcohol and smoking, right? Your brain doesn't know that drugs are bad for you. It just knows that it's really easy to do drugs or to smoke or to have a drink, right? That's what the brain does. It tries to reduce friction and power and usage and it does it through habits. As a trader, it's really hard to break a habit, but we have to start breaking these over time.

    The analogy I like to use with people when I do coaching is – It's like becoming either a swamp or a river and that's where this kind of starts to circle back around to swamps and rivers. Swamps, as you know, are stagnant pools of water. They don't really move. They start to accumulate a bunch of stuff that we don't really like, right? Usually like alligators and moss and funguses, things like that. But swamps are spread out over a large area of land. A swamp can encompass many acres or even thousands of acres in some cases and it's just all stagnant water spread out everywhere. And this can sometimes be like what our habits are. Our habits are just stale old habits that are spread out all over our brain. We have habits for everything and they're just old and run down and they just continue to sit there and just barely keep you going and barely keep you alive. But what you need, if you want to start changing your life and especially changing how you trade and invest, is you need to act more like the riverbanks of a major river. You need to have structure and really, really hard structure at first, particularly in the first 60 days of trying to develop a new habit, that helps force the water to a very defined area. Structure like riverbanks, you take away those banks of a river and it becomes a swamp, but when you have that structure in place and the water is focused and concentrated, it becomes a force of nature. It moves fast, it has focus, it has direction and that's how you should think about building new habits. You should think about building new habits like creating structures and riverbanks that force you into a focused and concentrated area at least until the new habit develops. This is why people fail all the time at habits because they try for a certain period of time with no real structure and what they end up becoming is they end up becoming a very nice river at the top, but as you go downstream, the riverbanks fall away, the structure falls away and it just becomes this massive swamp all over again. Really focus today if you want to change how you're trading or change how you're investing on creating massive structure in your life for the next 60 days, so that you can really focus and concentrate on the things that will create new habits and break the old habits that you've had for potentially years or even decades. Hopefully this helps out. As always, if you have any questions, let me know and until next time, happy trading.


    #646 - The Failure Of Trend Lines When Trading Jun 29, 2019
    Show notes

    Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we're going to be talking about the failure of trend lines when trading. There's two things that we can talk about really on today's call. First, there's just the technical failure of a trend line, so this idea that if you draw a trend line on a chart… And many people draw them all over the place, so you can just search trend lines on Google and you'll find a bunch of them for different stock charts. That when you draw a trend line, what you generally want to see if the trend is going to break is a massive and hard break of that trend line. If you have a very nice upward sloping trend line for say Apple stock or Tesla or the markets and then you have a massive down day that pierces through that trend line and closes well below the trend line, that would probably assume that that trend line has now been broken.

    Now, the other side that we have to talk about is just generally, the failure of trend lines because they are so subjective. And I know there are people out there who love trend lines and I know that this is probably not what they want to hear, but the reality is that trend lines are highly subjective. If you give me a stock chart of 10 different symbols and 10 different people drawing trend lines, there will be hundreds and hundreds of different combinations of trend lines. I understand that there's probably a right way to trade or to draw trend lines. I have read books and I've seen videos and I've done all the research just like everyone else that says that you have to draw it from the low to the relative low of that day for the next one and the next one, but at the end of the day, a lot of people are still looking at trend lines completely different. Even if the book says… And I don't know what book it would be, but I'm just using – "Even if the book says you have to draw a trend line this way, that doesn't mean that everyone's going to draw it that way, that doesn't mean that everyone's going to see it that way." And so, if somebody sees it a little bit differently, they may execute a sell order much faster or a buy order much faster than another group of traders and another group of traders.

    To me, trend lines are cool to look at. They're definitely something you should take note of or have an awareness of, but it should not be a means for executing or exiting a strategy. In my opinion, using more of a mechanical, quantitative-based approach is way better than something that's probably on the more subjective side. Again, not to say that there aren't people who do really well at doing this, but I think they're the exception, not necessarily the rule. Hopefully this helps out. As always, if you have any questions, let me know and until next time, happy trading.


    #645 - The Hidden Benefit Of Time Pressure Jun 28, 2019
    Show notes

    Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we're going to be talking about the hidden benefit of time pressure. Many people are familiar with Parkinson's Law. If you're not, basically what Parkinson's Law says is that a task will swell in perceived importance and complexity in relation to the time allotted for its completion. A good example of this would be – Let's say you want to change your diet and you want to start going to the gym and eating healthier. You might give yourself a year to change your diet. Now, just that little act of intuitively giving yourself a year to change your diet immediately tells your brain and your subconscious that this process is way more important and way more complex than actually maybe it needs to be. Giving yourself an entire year to change your diet and change your exercise or fitness regimen does not need to be the case. You don't need a year to change it. Maybe actually a week and you could get everything setup to do something completely different. What happens is that when it comes to trading and investing, traders will often say, "I'm going to give myself six months to learn options trading." or "I'm going to give myself a year to start transitioning to options trading." But the reality is that when they do this, they give their subconscious these indications and these little queues that options trading is way more complex, it's way more important and therefore, it needs all of this time to start learning all of these different things and what you end up doing is finding yourself down a very deep, dark rabbit hole of trying to learn everything there is to know about options trading before you place your first trade.

    What you should do is you should give yourself some sort of reasonable time pressure. Now, reasonable could be different for different people, but really kind of stress and hopefully challenge yourself to do something in a condensed time pressure, something that you actually feel potentially a little bit stressful and anxious about because it seems like it's really too short of a time period. Now, does this mean that you should cram through all of Option Alpha's courses and tracks in four days? Probably not. But we often say maybe an eight-week or a six-week window is more than enough and is small enough of a time crunch that it forces you to complete the most essential elements. And what ends up happening is that when you complete these really essential kind of big rocks as we talk about here at Option Alpha, these things that are kind of the 80/20 principle type elements of trading, you end up getting about the same results than if you had way more time and you had all the time in the world to look at every little detail and intricacy of trading. Force yourself into a smaller, reasonable timeframe. Whatever it is you want to learn, if it's options trading, if it's fitness, if it's something else with your marriage or work or something business-related, force yourself to learn that concept in a more condensed fashion and focus on the elements or the characteristics of that strategy that really move the needle, the 80/20 of whatever you're focusing on because if you give yourself more time, you're ultimately going to find that it ends up being way more complex, taking even longer than you gave yourself initially and this perceived importance and anxiety will basically crush you and ultimately could lead you to just giving up and failing altogether. Hopefully this helps out. As always, if you have any questions, let me know and until next time, happy trading.


    #644 - We Don't Filter Trades For "Trump Tweets" And Neither Should You Jun 27, 2019
    Show notes

    Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we're going to be talking about why we don't filter trades for Trump tweets and neither should you. This is actually a really interesting topic and I am so glad that the president continues to have these random off-the-cuff tweets because this is exactly what I've talked about for over 10 years, this idea that black swan events and unknowns are a constant and reoccurring phenomenon in the market, this idea that no matter what the catalyst is, what the actual thing is that creates a black swan or an unknown in the market, these will continue to show up in the future. Before president Trump, we never worried about what a president was going to say on Twitter. Now, we worry about what a president is going to say on Twitter and this creates a level of unknown or uncertainty that causes option premiums generally to go up and implied volatility expectations to still and continuously overstate the expected move.

    This is really cool because what it continuously proves is that in the future, there will probably be something different besides Trump tweets that end up being this unknown catalyst that we always just have to kind of keep in the back of our mind as the – "I don't know what's going to happen because maybe Trump might tweet about this or maybe Trump might tweet about that." But in all of these cases, we still shouldn't filter trades because of what might happen, especially as option sellers. This really kind of drives home one of the key fundamental elements of option selling and that is this over-expectation of implied volatility, this idea that people assume things are going to be either really bad or really good and it never ends up being at the full end of the extreme. It ends up usually kind of landing somewhere in between and that gives us an opportunity or an edge to sell premium. Should we filter for Trump tweets? No, we shouldn't. We don't know not only what the president is going to say, but we don't even know what the market reaction is going to be.

    We talked about this all the time that even though a company might have great earnings, that doesn't necessarily mean that the stock rallies. Even though the present might tweet about some oil issue or the FED or gold or silver or whatever the case is, that doesn't mean that the market's going to react the way that we think it's going to react. We don't need to filter for any political, geopolitical type of event. Should we have an awareness of it, so that we can maybe under-allocate during certain periods of time and over-allocate during certain periods of time? Yes. But should we just completely filter and not trade? Absolutely not. We should continue to stay consistent and persistent, working the framework that we've already laid out or that you've already decided you're going to use for your trading.

    Another thing that I talk about often is that with our back-testing tool that we built at Option Alpha, we don't have a mechanism to filter for news events. When we go back and back-test a short strangle for 20 years or 25 years, there's no filter that says, "If Trump does this…" or "If Obama did this…" or "If Bush did this…" or "If Clinton did this…" We don't do any of those type of filtering because it ultimately doesn't matter long-term. Could it matter in the moment, in one month that you're trading? Of course. If Trump tweets or if somebody does something or the FED says something, it could obviously change the trajectory of a single month or a series of months, but long-term, it's not going to change the eventual and predicted expected outcomes of a strategy. That will not change over time.

    Hopefully this helps out. As always, if you have any questions, let me know. If you don't think that I'm right on this, if you have an opposing opinion, let me know. Add it on Twitter, on Facebook, Instagram, everywhere at Option Alpha. Love to hear what you guys think. "Maybe this time is different." I don't think it is. I think it's just another example of what black swan type events are starting to unfold now in this day and age and this is just a new version of them. Hopefully this helps out. As always, if you have any questions, let me know and until next time, happy trading.


    #643 - It's Easy To Be Negative About Everything Jun 26, 2019
    Show notes

    Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we're going to be talking about why it's easy to be negative about everything. Look. This to me is a big one because I think that in this day and age, especially with social media and internets and just websites in general, it's super easy for everyone to be negative about anything that they want. In fact, I would even say that any moron can be negative about any industry or business or person or thing and it's much easier to be somebody who's negative than it is to be somebody who has a positive attitude or even let's say a winning attitude, a social collective emotional attitude to help other people. That's really difficult because you end up being a lot more vulnerable when you start going outside of your social norm box of being super negative and you start promoting other people and you start sharing your ideas and telling them they look great or you're really proud of what they've done because it's really easy nowadays to cut everyone down.

    Everyone can add a comment. Everyone can down-vote something. Everyone can talk behind other people's backs. It's easy to be negative, but it's actually very hard to have a positive winning attitude. And so, I would implore you today, hopefully, to start taking a better path. If you're a person who likes to cut everything down… It doesn't have to be necessarily any one person. It could be an entire industry. It could be an entire community. It could be an entire business model or a framework or a website or a person. Try not to be sucked down that rabbit hole because it's very easy to say, "X, Y, Z is terrible." or "The government is bad." or "This politician is bad." or "This trading system is bad." It's a lot harder to start looking objectively at things and start actually giving your constructive feedback and praising and pushing people in the right direction because that ultimately will help elevate you internally. Hopefully this helps out. As always, if you have any questions, let me know and until next time, happy trading.


    #642 - Choosing Between Unhappiness And Uncertainty Jun 25, 2019
    Show notes

    Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we're going to be talking about choosing between unhappiness and uncertainty. This is a really cool topic and one that I really like. I like this difference between these two words and how they kind of ultimately are going to lead us to making different decisions in the future. But the reality is that many people choose unhappiness because they have a fear over the uncertainty. What happens is that they're scared to make a change or a move because they don't know what's going to happen. They're scared to change a job. They're scared to start trading options instead of just investing in stocks which is what they always know that they can do, their fallback, if you will, their safety net. And so, in doing this, they actually are choosing to favor unhappiness over uncertainty. But the reality is that no matter what they do, even if they stay in their current state and environment or keep doing what they've always done, they're going to get what they always expect to have as an outcome.

    There's actually really no benefit to staying in a state of mind or a place where you choose unhappiness because you just fear change or movement. Change and movement is actually great for us. It actually allows us to learn, it allows us to grow. We expand our network, we expand our knowledge. And so, in my opinion, I think you should choose uncertainty, knowing that it will eventually lead to some ups and downs that will make your life more fulfilled. And so, I don't think that a lot of people know that they're consciously making this distinction. They're doing things that they've always done because it's safe and it's secure, but they'll never get where they want to go in their mind because they are not choosing to follow a path that is not clearly labeled. And that can be difficult. I understand that. That can be sometimes a little bit scary. In the world of options trading, it can be totally scary. To place your first trade or to open up your brokerage account and sell all of your stock and start trading options. I get it, but ultimately, by doing that, you're starting to move down a path that lead you to your goals and to the things that you want to do and you're deliberately choosing to start moving in the right direction versus just staying where you are and staying in this unhappiness state. Hopefully this helps out. As always, if you have any questions, let me know and until next time, happy trading.


    #641 - When To Sell A Put Option Jun 24, 2019
    Show notes

    Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we're going to be talking about when to sell a put option. A put option is a very simple, very basic option strategy whereby you're just selling a put option usually at the money or slightly out of the money compared to where the underlying stock is trading. Now, this is a good strategy that actually works as a stock replacement strategy. And I tell people this a lot, but if you actually have a very bullish long-term outlook on an individual stock that you're trading, it's actually better for you to consistently sell just a regular put option, again, either at the money or slightly out of the money than it would be to actually go out and purchase the shares of the underlying stock. Now, we've shown this in our research, as well as other outside third-party sources like CBOE and AQR, that when you sell a put option, you actually end up seeing better returns, lower volatility and a lot less capital required to enter a position compared to just the outright purchase of the long stock or underlying.

    Now, the question really now is – If you don't have the opinion that you want to hold the stock long-term and sell a put option as opposed to using the stock, when do you start selling put options? Ultimately, a put option strategy is a neutral to bullish strategy. If you sell a put option, you're assuming that the stock is either going to stop declining or stay in a range or that the stock is going to continue higher. This works out really well, obviously after market selloffs, usually after huge spikes in implied volatility. That's usually a good time to start executing just a single naked put option sell. As always though, we want to make sure you guys are aware of both sides of the put option strategy and the other downside to using a put option strategy is that as it is a stock replacement type strategy, it is going to behave very much like the stock in regards to market selloffs. When a stock or underlying security that you're trading experiences a 10% or 15% selloff, you're likely going to see a little bit of a drawdown in your put option strategy, definitely going to see a drawdown if we also see implied volatility spike during that time period.

    We always caution people that they should use put option strategies in conjunction with other options trading strategies that give your portfolio generally a neutral bias or diversified exposure to the market. Put option strategies should not be used in a vacuum by themselves without any other protection and definitely not in your full account. You should always have extra cash available. With regard to how far out to sell put options and what strike prices, it obviously depends on the market environment. We usually see that around 30 to 60 days is a good time period to sell put options and somewhere around a one standard deviation move, so a 15 to 25 or 20-ish Delta ends up being, again, a good general range to target. You would always want to back-test your strategies, see what works for you, what works for your account balance, what works for you as far as win rates and P&Ls and drawdowns over time. You definitely can do that through the Option Alpha website if you want to, but this just gives you, again, a good general range of where you should be trading this. As always, if you have any questions, let us know and until next time, happy trading.


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