If I make this trade to infinity, both of us will have the same P & L, minus commissions. Since our capital is not infinite and commissions are, both of us will eventually end up broke
- CHAPTER 10: Why Trade Weekly Options?
- from Profiting from Weekly Options: How to Earn Consistent Income Trading Weekly Option Serials
- Publisher: John Wiley & Sons
- Released: February 2015
This is incorrect, it makes the assumption that we each win 50% of the time. Win rate and the actual commission need to be known to calculate P&L. Assuming there is only two players, someone would win before all money goes to the house.
Share this highlighthttp://www.safaribooksonline.com/a/profiting-from-weekly/8697302/