Search results

Thanks. This is the kind of answer I was looking for, with specific numbers as to how much margin is more "optimal" to use. Extraordinary returns will not be achievable if I cut back the exposure though. Would you consider selling calls as a (slight) hedge and a return booster?

Thanks a lot

This is the only thing I am really scared about. If you could give me any guarantee that there will be no plane hitting the White House, no nuclear war and no biological weapons attack, I am almost ready to retire and trade full time

They won't. It happened last December. Rolling your puts to reduce your overrall delta is the key

Getting out when VIX goes above 25 prevents your account from blowing up. You will sustain losses but you won't blow up

I am certainly not a genius. However, I feel more comfortable selling puts compared to being long. I think in the case of a sideways markets, which is maybe the most likely scenario now, I will do a lot better. What worries me most is an event like February 2018. In any other case, I feel I can...

Sorry, I dont know what BP is. The account is getting close to be eligible for PM (I don't know if that will help in the case of put selling though). I use all the available margin. Currently, I am short 6 puts and I roll the position to maintain a minimum delta exposure

Just checked, ATM vols were much lower for the first 3 quarters of 2017 compared to now

I don't get the "you made 77% on the initial margin req". Sure, you can't make 77% without leverage... But 77% is 77%... I think vol was quite low for an extended period during 2017. VIX was even below 10 if I recall. I don't remember ATM vol though

I never cut back. I lost 30% percent during this period, but I was a bit lucky during the VIXplosion. I lost almost half of what I "should" back then, because I closed the position just before the options prices "dissappear" and was unable to roll over, as I surely would do. That helped a lot...

I do (77%). I roll over the position when overall delta drops behind a specific level relative to the liquidation value. So, the average holding period of the positions in 2019 was something like 15 days. Also, bear in mind that I use all the available margin IB allows (almost always pay...

I am a young trader...I have traded the last 3 years following a very simple strategy. Selling OOM puts in ES. Delta is between 0.10 and 0.14 with 50 days to expiration. Returns are exceptionally good (considering these years weren't the best for vol sellers. Specifically, +61%, -22% and +77%...

thanks!!!

I would appreciate your help. I am looking for the name of a very successful options trader. He was selling strangles on the S&P, beating the index for the last 30 years or more. His name escapes me

my goal is to assess whether a VIX future contract is relatively "over/undervalued" based on the premium it is trading over VIX. VXST,VXV and VXMT are indices calculated from implied volatilities of options, exactly like VIX. So, I guess they are not helping much.

What I basically need is a hypothetical constant maturity (30 days) contract against spot. That would be really useful. I need a combination between front month and second month. This is similar to the way VXX is trading

thanks a lot...

Front month VIX is trading 27% above spot VIX. Is this normal? What is the average premium 25 days before expiration?

I think this is not actually about hedging. It is about employing the ideal strategy in order to minimize the loss. I think that readjusting the probabilities when delta touches 0,35 ensures that you will not suffer a loss greater than 5% of your capital.

I sell strangles on ES and NQ for about a year now with great results (up 30%), The big issue concern however is what would be the appropriate adjustment if the market goes significantly up or down. Up until now, I adjust my positions once the options reach a 0,30 to 0,35 delta. Do you think...