
…thing that is interesting is reflected in those indexes. Every crash, peak, hype and fear is there. VIX@CBOE or the Volatility Index of SPX is the pure reflection of fear and greed in the market. When markets move, the volatility moves and vice-versa. Correlations work for the long term, but wh…
… 4 and the probabilities are in your favor, but in reality you make 19$ and risk the same 100$. The drop from 25$ to 19$ is a combination of widely suggested fix at 50% plus the courtesy of the broker taking between 3$ and 10$ per trade round trip (in and out). Again those minor differences compound like a snow ball, and reduce your edge.
…u realize at best you actually make 0.19 or 19$ (options contracts have a standard 100 multiplier). So let’s say you are risking 100$ to make 25$ which is 1 to 4 and the probabilities are in your favor, but in reality you make 19$ and risk the same 100$. The drop from 25$ to 19$ is a combination of widely suggested fix at 50% plus the courtesy of the b…