In order to enhance profitability over time, I’ve been thinking about the factors that go into one’s rate of return. For example, one might sell a straddle for 1.00 premium, but it’s relative juiciness varies since a trade on a 5.00 stock would consume less buying power than a trade on a 20.00 dollar stock. On the other hand, if the duration of the first trade was 5 months and the second 1 month, perhaps they’re somewhat equivalent. So it seems like there are 3 factors here:
- …