hi

are you referring to double premium cut loss, if that is 1 of them, then check out dave caplan book that is a much better author

hi Dave,
yes double premium cut loss is one of the 4 techniques he mentioned. you mean this is not a working method?

he mentioned stuff like rolling as an adjustment too. isnt that a working method too? pls enlighten. thank you. :)

rgds
ky

it is 1 of the more popular method for cutting loss on naked options. If you trade more and more you will realise it is not so simple. We all know most of the time options expired worthless but it is the sometime that we have to take care of so according to the michael gross cut loss when your premium double

Example
month 1 - make 100% (options expired)
month 2 - make 100% (options expired)
month 3 - loss 200% options double
this 3 month work for nothing

any market that you trade, there is bounce to be some big move once or twice a year. If you get hit 1 time which mean you need 2 months down to recover, if you get hit 2 time it mean you need 4 month to recover.

That is not my strategy for cutting loss. but that is just me. Follow Mr Sun rolling will be better, I do a different rolling but at least Mr Sun rolling is much better than cut loss at 200% or worse 300% (which mean u need 3 month to recover)

ok, i see what you mean. :)