If you use a investment method that defines at what price a certain amount of holdings should be added/sold then writing/selling Options can yield additional benefits/rewards. Robert Lichello's AIM for instance supports calculating the next trade price/amount that you would add/reduce at. Match that (at least in part) with selling Options and ... you were going to buy (sell) that amount at that price anyway and you captured a bit more 'interest' along the way. But when you factor in the time/costs etc. the benefit for most is inclined to be relatively little - but in some cases can be more reasonable.Options are zero sum game. Sort of - the reason why it isn’t are usually covered in graduate level courses.
This is my day job. This is a deep nuanced subject. Feel free to ask me anything.
The standard in options pricing is the Black-Scholes Model followed by the put-call parity formula.
Options, Futures, and Other Derivatives by John Hull is a good place to start.
Statistics: Posted by seajay — Mon Jun 10, 2024 4:19 am — Replies 55 — Views 5141