As you know by now all sports subscribers get access to my Slack channel that many of my real time stock and option trades are posted.
This feature has been much more popular then I anticipated and the interest is getting to a level that is equal to the handicapping side.
One of the trades I make weekly has been 2 day short put sales. I have a screen I use on Wednesday evening to come up with a basket
of stocks to consider for this method.
Then on Thursday shortly after the market opens, I look to see if there are any premiums to sell, that meet my requirement for Annualized ROI.
To date I have published 422 two day short put sale trades. 397 winners vs 25 losers. That is a win rate of 94.08% with a profit factor of 2.34.
The drawdowns have been pretty tame until trade #369 where my largest drawdown to date occurred. So far we have recovered about 60% of the
drawdown over the last 45 trades.
422 Trades are reaching a level that is significant. But of course the more trades the more the reliability of the results.
This is a rather conservative method, as the transaction ends Friday after the close. The result is you either pocket the premium or
take delivery of the stock.
Some strategies in short put selling involve rolling it over to another month if you are underwater. Myself, my preference is to take delivery of
the stock and sell calls against it. If the screening is good, then this approach is the way to go. When you roll, you add transaction costs, and give up EV typically.
Here is a post I made this morning on my chat channel to subscribers: