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"This whole needing to have a million dollars to trade is complete nonsense." Starting with a few assumptions: 1) You won't make more than 10% a year in the long-run. Anybody who says they do should promptly provide a verifiable track record, and longer than 5 years since everybody and their...

Before even getting into all the nitty gritty details of whether it makes sense FOR YOU or not, the first thing you'll need is about a million dollars to trade with, and it has to be money you won't need for the next 5 years or so in case you suffer an unexpected drawdown. When you factor in...

Dude, you should have ignored me and stopped talking 5 pages ago. The more you guys speak, the worse it gets for you. I'm flattered that you took the time to read my other posts on this forum, but I don't give a shit about yours so I haven't done the same. All I know is in this thread, you're...

"A Sharpe of 2 based on a 13% annualized return (assuming 25bps risk-free) implies a sigma of 6.38%. So somehow you've managed to chase "high-flying" IV names, selling ATM vol at a much lower level of portfolio variance than a buy-and-hold SPY investor.....I call BS." Oh noez... Amateur trader...

The reason he doesn't post closing trades, management of losing trades, or a P/L is the same reason other people do the same thing all over the internet everywhere you look. It's because they don't actually have any idea how to make a long-term profit, they just know how to "identify possible...

"I have cut my size in half but the only way I see out of this is by trading less frequently only on super high conviction trades." That might seem logical to you, especially when you're in the middle of a major drawdown, but that's actually the exact opposite of what you should be doing...

I don't have time or interest in running the backtest, but I would imagine during a strong bull market you'd see losses. Those LEAPS just won't have the protection you're expecting against your monthly call. Just look at the delta's of those strikes. No matter how you look at it, your...

"We have all learned from experience that arguing with someone like you is a waste of time." Of course, guys like you hate when someone bursts your idiotic bubbles. You prefer being "the man" on the forum, but the problem is you are laughably out to lunch in this thread. As I've stated, I...

And to make matters even more frustrating, I'm debating with a guy that posted a study on put selling and didn't even bother to read the study. It says right there on the first page of the study, selling AT THE MONEY puts. I guess you missed that part huh? Near or ATM, you know, exactly what...

Read above. XLU on the best day the entire year for this strategy was 3% annualized. Hind sight 20/20, best day of the frickin year, it's still a total dud. Stop it please, I can't take anymore.

For anybody else keeping score, here's how awesome his XLU example is. If you would have done this strategy on the highest IV day in the last year, on that very day right at the peak, here's what you get. Feb 12th, 2015. The Jan 2016 (337) 39$ put paid 1.26$. How about on a more...

"So I guess I'm not a retard for thinking ATM or near ATM strategies are the way to go?" Yeah, near or ATM works just fine. Long-term the premiums will justify the risk, and the potential ROC has a chance of outpacing the capital appreciation plus dividend on the underlying. If it can't, what...

"In the example I gave of XLU you would earn 4% annualized. XLU pays 3.4% in dividends. So if you are interested in XLU as a stable, rel safe stock to collect dividends (there are such people) you are better off selling the 15% OTM naked put , collect your 4% (up front instead of over time) and...

"No one has advocated selling 15percent otm puts systematically." That's what's called moving the goal posts, and it's how losers debate. Look dude, we've been talking about significantly OTM and 15% specifically for a while now. Don't move the goal posts now that I've proven that even on the...

"I'm sure he meant to use a smaller size on all (!) trades, not just after a drawdown." Yes, obviously. The OP was trading too large on his trades in the first place, before this all happened to him. The only reason he didn't know it was because he was having success. Success often masks the...

"This is, of course, the major reason this forum has a lot less value than it should. Instead of recognizing that there are many different ways to trade options, VIX, and many others, assume if you are not doing it MY way you are an idiot. Such an attitude does mark an idiot but the idiot is on...

"It was over a 30 or so trades losing 20 trades at 2 percent each and winning 10 at 1-2 percent each. Usually my win rate is much higher" If that's the case, then the flaw in your system is trade size. You have to expect certain periods of underperformance where your losers far out number...

I would add though, while it's true that VXX vol is "cheap" now, timing vol spikes is a futile endeavour. For every time you're right, you'll likely have several where you were wrong. Unless you're going to be using this information to create some broad system that is diversified and...

You might want to look into opening a brokerage account so you can have access to their software which will have built in backtesting going back at least 5 years. You can play around with historical prices all you like and build yourself a trading system based on actual data rather than random...

@ newwurldmn It doesn't matter one bit if you use 4%, 2%, or 7%, the end result is the same. The strategy is a complete dud ! If you're playing this strategy that far out of the money, in your best case scenario you'll make your premiums. No dividends, no capital appreciation, just your...