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This study goes back to cherry picking though - First I'm not sure that 6 years of a bull market with contracting volatility is a representative sample but that's for everyone to decide. The bigger problem is there's no info on the sizing, if I buy an ATM straddle on AMZN (trading @ 700) and I...

Ok - I'll bite - care to share more (what you are doing - how you derive profits with an overall 0 sum outcome) or is that the extent of your post? Also what's the significance of formula 3 and 4 - and the market price ? How does time and volatility factor into this?

Nice work on the profits - looks like the average trade size/leverage went up overall though - if I sum the credit of the first 10 trades it's less than 1/4 of the average trade credit of the last 10 or 15. So what used to be a 1500$ up day in June is now a 6k day in September.

Bobby - what happened? It took almost 5 month to make 7k in profits and now you make that on a daily basis? Did you take some Karen style accounting classes or was reduced volatility and some delta moves enough to go into hyperdrive?

Now that Karen is investigated they have to promote another "supertrader or rising start" who's strategy is almost exactly the same but hopefully will hook another 5k viewers until he blows up.

Forget Karen - you guy should be doing what this guy does. He makes 3% a month on a strategy that's similar but slightly refined. https://www.tastytrade.com/tt/shows...rod-tastytrades-newest-rising-star-08-04-2016

Maverick - I thought I understood big words like convexity and gamma risk but maybe I didn't - so enlighten me where I'm wrong or if you just throw the words out there trying to confuse the initial post. If I sell one straddle my buying power reduction is 1/10 of selling 10 straddles. That's...

Give a man a fish, and you feed him for a day. Teach a man to fish, and you feed him for a lifetime. That google thing may be useful in other areas as well !!

try http://lmgtfy.com/?q=capital+reserve+requirements+for+insurance+companies

Here's a couple of take aways I have. I think Bobby will land somewhere between a 12 and 15% annualized return three years down the road once he has more data. It is a profitable strategy since you're taking unlimited risk for limited gain - just like an insurance company operates with 8-10%...

Forget Karen - you guys should be doing what this guy does. He makes 3% a month on a strategy that's similar but slightly refined. https://www.tastytrade.com/tt/shows/rising-stars/episodes/meet-rod-tastytrades-newest-rising-star-08-04-2016

Hope you are doing ok. I think you see why the analyze tab now becomes more of a Toy than a risk management option - with serious deltas like you have after this move hope becomes a strategy - spoken from experience.

Honored that I see two posts of the rare 1% (I'm not sure where Mav came up with that nbr - this seems to be another broad statement without any foundation but hey - he didn't choose the nickname without a reason - he is a maverick after all) who claim to understand option modeling - must be my...

So what you're saying is your spreadsheet that has a single guy looking at it to find potential issues or bugs is more accurate than retail software that has thousands of guys looking at it or live data feeds updating greeks in real time? Learning something new every day - you may want to sell...

Are you trying to get a Karen like accounting scheme going? The NAV is already in the spreadsheet and gets updated daily (1st post) - what do you get out of realized vs. unrealized?

If she liquidates her fund today the losses would go from "paper" losses (unrealized) to actual losses (realized). They would go away and the investors would get stuck with it. What's unreal to me is that her monthly accounting was not based on the fund's net liquidation value or mark to market...

Look at the tastytrade track record on that strategy. They have many winners but usually a single loser eats all their profits from that strategy and then some. Almost every earnings quarter they catch an outlier. The Goldman approach has very few winners but seems to be a better p&l play...

Bobby - interesting thread and good luck. If this is a real account get portfolio margin rather than reg t (if you don't have it already) 150k is above the td/Tos threshold. Don't increase your leverage but having portfolio margin helps a lot when the markets get a little rougher and you need to...

2.50 (minus any commissions you're paying for the initial trade plus commissions on the two legs (buying back the 25s and selling the 20s)). Also keep in mind this is your credit collected, not your profit - it just is your profit if you hold to expiration and MSFT settles between 15 and 20.

You've obviously figured it all out - so who am I to tell you you're wrong. You remind me of an options trader who had a thread http://www.elitetrader.com/et/index.php?threads/howardcohodas-index-options-credit-spread-trading-journal.212817/ Initially he thought he was smarter but then reality...