What kind of drawdowns can be expected if you bought at the absolute worst time every month?

Here are the 30-day drawdowns, over the past five years, of buying at the top and selling at the bottom. For example, if you sell a put in IWM, it is very common to see a median drawdown of 5% each month. The UVXY, a very common instrument for short-term VIX trading has median drawdowns of 25%—ouch. Keep in mind, that the bigger the historical drawdown, the greater the option premium built into the price of the option.

Interesting Source of Data

Check out this: https://fiscaldata.treasury.gov/ Is it going to change your life? Or make you a better trader? No. But for nerds that want a new source of free data, check it out. Info on bonds, rates, etc. Quant stuff.

Index ETF Trades

The index ETFs currently have high implied volatility. We used the Alpha Boost system to find some potential short premium trade ideas.

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Cherry Picks is written in collaboration with Michael Rechenthin, PhD, Head of Research and Development at tastytrade; and James Blakeway, CEO of Quiet Foundation, a data science-driven subsidiary of tastytrade.