Monday, September 16, 2013
Monday, September 9, 2013
TT - MM: Managing Winners - High IV, 9/09/13
Take-away:
- Entry: past 5 years in AMZN and BIDU
- Sell 1SD Strangle w/45DTE
- IV Rank > 50%
- IV Rank > 75%
- Exit:
- Close at 25%, 50%, and 75% of max profit
- Compare to holding until expiration
- If target % is not reached hold until expiration
- Waiting for 75% IV Rank greatly increases the average P/L-per-day.
- Holding until expiration did not return the highest profit and was nearly the lowest average P/L-per-day.
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