Search results

Options are almost always too expensive. that's why selling them tends to be profitable

IEF, the 10 year bond, pays about a 2% yield. Does this mean TYO , the 3x inverse 10 year bond etf, will decay 6% a year just from the dividends? Also SPXU (3x inverse S&P 500) ...if the SPY pays a 2% dividend, will this decay 6% a year just from dividends? Shorting inverse etfs in this manner...

Although August shows it down 7% that is only and end-of-month figure. It is possible they may have been down 30% at one point. Nevermind. This actually seems 'kinda' safe. If you have a $40k account and you're aiming for 1% monthy returns, you need to sell 2 of the weekly ES contracts at 2025...

yeah they are taking huge potential risk to get a high sharpe. One problem with sharpe is that is not not take into account path dependence. You can have 95-100% winning trades but still have big losses in the interim .

I find even delta 4-5 options move to much to underlying movement. Selling delta 2 puts seems better. Calls give too little to woth selling, and every time I have sold calls I haad to exit early to aovid potential very bifg losses. If karen is selling 14-day calls this probably would have been a...

relevant: https://www.reddit.com/r/options/comments/4kq9al/option_strategy_review_global_sigma/ they sell delta 5 weeklies.

how about selling a ton of ATM strangles that expire in 200-300 days. This market isn't going anywhere I don't think anyone really understands her method, myself included. I've heard four different accounts . It's pretty much a put selling strategy. I think she sells delta 5 puts that expire in...

He said to sell ATM strangles ..seems like good advice given that this market seem intent on going nowhere .

I wonder why Victor did not blow up in 1987?... I think 'edge' is just another word for having a unique strategy. Like shorting UWTI and going long USO to take advantage of the greater contango decay on the former. But I imagine nowdays, with the advant of computers and the very high stakes...

christ ..it goes from delta 4 to 17 in a single day? And then delta 28 a few days later http://www.surlytrader.com/wp-content/uploads/2012/04/Put-Selling-in-2008.jpg That means the ES put sold for 3 ($150 credit) become worth 30 unit. You die also interesting...

Mav, the size of the drop does not matter, it's the acceleration . The 2000-2003 bear market was actually good for deep out of money money sellers because it took 3 years for the market to fall 50%.

lol I know who it is...he sued the CME too Some people are posting about delta exploding from 4 to 40...I don't think it's quite that bad, nor do I think an astute trader would get caught in that situation. Victor was very aggressively selling weekies with 4-5% max downside which was breached...

All tests I run show good results with selling strategies, except for august , which has losses of 11k-16k for selling 50 SPY contracts and holding 22 days vs. $600-1000 credit. August was truly awfullest..the SPX fell 10% in literally four trading days . The IV surge is what kills you. But the...

such events are very rare. I have begun doing this a month ago so I woudn't know but I imagine it would be bad. In such an event, after the market is down 2% or so (in a single day), I would close the position and move the puts out to 120 days It's actually riskier selling naked calls on the...

very easy money. Up on all positions despite market falling 3% in the past month One strategy is to to sell puts while delta heding by shorting SPY. Selling 10 ES contracts at delda 5 gives delta 50 which means you short $50k of spy to stay neutral. This works for the first 1% decline. Odds are...

I know how an order book works. You can get filled between the quoted bid and ask. TOS makes money from those who think you can't or who are careless and accidentally accept the default price. When this happened to me awhile ago, I had placed single option order accidentally at the ASK. Then...

I know how limit orders work but a few times I forgot to set the limit order due being in a hurry or being tired and got the awful default fill. This happened three times over a year and finally on the 4th time I decided to make a threat about it. The problem is a better fill exists which TOS...

I can make a video or show a screenshot of it . When selling an option, for example, TOS may shows something like Nat 11.8 bid and 13.1 Ask . When you hit the confirm button it defaults to 11.8 , the worst price. A better fill is possible but for people who are naive or careless they get 11.8...

It's not honoring the best price. Imagine you are not paying close attention when you close the order (which happened to me a few times) and the system shows 44 bid x 47 ask. THe systme defaults to close at $47 even though I could have gotten filled at maybe $46. The reverse when buying options.

If you see a quote like bid $4 and ask $5 and you buy the option at $5 (which is where the system defaults) if will get executed at $5 even though it could have been executed at $4.7 or a better price. This occurs even as the stock price is unchanged. The think or swim system defaults to the...