Investing "Back-to-the-Future" | PowerOptions Web Log
Ever say to yourself, “I wonder how well my option strategy would work if it had been used over the last year, two years, etc.?” Well, at PowerOptions, we asked the same question and then developed an option “back-testing” tools to answer the question – and we also got a patent for the technology. The details of the patent can be viewed at this link. For example, suppose an investor wanted to know how well the Covered Call strategy would have performed over the last year using the constraints shown below: Sign up now for PowerOptions 14-day free trial stocks included in the S&P500 stock price near lower Bollinger band stock price in an uptrend (100 day moving average > 200 day moving average) days to expiration < 45 % If Unchanged > 2% Position At-The-Money Position selected on Monday following option expiration A Covered Call position may be entered...
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