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February 27th, 2019 at 3:52 pm
Good call, Ati, seems like a weak finish is in the making.
FTR/Robert – Thanks. Yes, it's more work and you don't KNOW you will ever be offered such great pricing again. As I mentioned earlier in the week, my goal is to make 20-40% a year and NOT LOSE MONEY so, when I have a chance to lock in 40% gains for the next two years on a trade with almost 100% certainty – that's worth all the forward-looking BS in the World!
The very idea that you think FTR will drift along for 90 days would lead to the conclusion that the volatility will leech out of the options and your return would be less or, if FTR were to pop $1, what will you do then, sell $4 puts and calls? If you are going to re-target every time – eventually you will get burned.
You can play it that way and I'd encourage you to try with 1/2 or 1/3 or 1/4 and just see how it compares – nothing teaches better than experience in this case.