Post #2200 by mungofitch on the Mechanical Investing board

Investment Strategies / Mechanical Investing

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No. of Recommendations: 5

For what it's worth, I would never buy long calls on stocks that are near their lows in the hope of a turnaround. I only buy calls on stock with good, but not crazy good, upward price momentum.

Buying long dated puts on stocks near lows might potentially be more rewarding, statistically : )

For whatever it's worth, VL universe, buy the 5 stocks the furthest from their 52 week highs, hold 3 months.
1999 to 2023: S&P CAGR 11.0%
Portfolio CAGR (no friction): -30.2%

Percent losing stocks: 61.6%
Average loss: -37.1%

Ever consider a short leg for your 6/3 work?
As with most short strategies, this is probably best avoided during the rocket rebound after a big bad bear ends.

Jim

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