Tuesday, March 17, 2009

Condor Options

I thought this post at Condor Options was very good. I think one thing that makes testing these types of option strategies difficult is that you really need some kind of software package to do it. I can test a simple mean-reversion strategy on S&P500 on excel that gets returns close to what they have, but it would be a pain to test bull and bear spread strategies without something at least like Trade Station and preferably something better. That being said, I think it will make a lot of sense to pursue this type of strategy further. Just like mean reversion strategies tend to work in spurts, so do trending strategies. Most strategies could use additional chances to earn some premiums.