Road to Recovery - How to Slow and Steady Restore a Blown-Up Account (and Be the House Again)
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if one
- has $100,000 capital
- has no stocks (or has stocks but not using the margin/leverage)
- is only selling weekly options (5 DTE)
- is getting only $1 premium on 100-wide spreads (2/4 -p680/+p580, 20% OTM, 6 delta, Prob OTM 93%)
- has no other positions (no second income for the week)
- is BTC weekly at 80% (don't milk it to death and chance an SP reversal)
- is using only 95% of cash ($5k is reserve)
- is compounding the profits (no acct withdrawals)
- is not adding new capital (no new deposits)
- is trading 52 weeks
then
- the $100k capital will grow by $45,600 in year 1 (ROR 45%)
- wrapping the BPS into an IC on Thursday (0-1 DTE) will give gravy income
assume
- 52 wins and no loss; (of course, in real world one will have the occasional loss but less likely at 20% OTM 5 DTE)
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