I’ve been trying to incorporate the future value annuity formula into my option trading strategy. Not sure if I’m applying it correctly though.
Anyone here use this formula in their trades? Wondering how you’ve made it work and if it’s actually improved your results.
I tried using complex formulas like FV annuity early on. Lost a bundle on SPY puts thinking I’d outsmarted the market.
Now I focus on price action and volume. Last month, I caught a breakout on AAPL options just by watching the 15-minute chart. Made 62% in 2 hours.
Sometimes simpler really is better.
Tried the FV annuity formula myself a while back. Thought it’d give me an edge, but ended up overcomplicating things.
These days, sticking to basics like support/resistance levels and trend lines works better for me. Last week caught a nice TSLA option play just using those.
If you’re set on using it though, maybe backtest it first before risking real money.
FV annuity formula rarely applies directly to options.
Key factors for options:
• Implied volatility
• Time decay
• Strike price
Focus on these metrics for more effective trading.
FV annuity formula doesn’t really fit with options trading. I’ve tried fancy math before, but it just complicates things unnecessarily.
Stick to the basics that actually move option prices: implied volatility, time decay, and price action. These factors will impact your trades way more than any formula.
Last month, I made a solid 40% on AMZN calls just by watching for a breakout above key resistance and timing the entry when IV was relatively low. Keep it simple, focus on real market dynamics, and you’ll likely see better results.
Never used FV annuity for options. Stick to price action and volume.
Made 55% on AAPL calls last week watching 5-minute chart. Keep it simple.