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Mark Simms wrote:
>Correct: those percentages are more indicative of a "short option" position
>situation...
>i.e. selling premium, not buying it.
>Something's wrong here unless his profit per trade is low....
Since he speaks of profits in terms of peak levels, it sounds more like
buying options rather than selling options.
When selling out-of-the-money options, you can have a high success
rate in terms of percent wins, but if you don't have a way to manage
the losers, then the losers will wipe out your wins. Since this
guy doesn't seem to mention exit strategies anywhere, he's probably
recommending long option positions. Either way you wouldn't achieve
the success stated, without a clear-cut exit strategy.
-Alex
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