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Thats the whole point,and its still hard to believe you put up the numbers you claim..40 percent on 10 delta options doesnt make you 40% in 4 months.You would have to sell apx 30% vol and keep rolling it at apx 30 vol.Selling higher deltas obviously helps your cause.. Obviously the market...

How many puts / underlying notional were you short on a 50k account? And how much was the market up during the 4 month period you gained 40 percent??

77 percent on what???? You started with 100k and ended up with 177k?? One year??? 2.5x the S and P return selling garbage puts?? You are good.. Cmon bro..

I agree with you,but the guys are selling puts 3-1 on a notional basis for the cash on their account.. Foy every 100k in cash,they are long apx 300k notional of underlying in a move down.. And this is in a really cheap vol enviorment.The 10 delta put they ate trading is only 9 percent below...

So you are saying regardless of the level of implied vol, one is better off selling 10 > Delta .10 puts than buying 100 shares in the index??

35k in margin will afford you the luxury of selling apx 10> 51dte >0.10 delta puts.. You would be short the 91% of spot put,taking in apx 1.10 per option,for a total credit of 11 bucks.. 11 dollars in premium on a 321.86 index is a 3.42% return would annualize to apx 24% assuming you collected...

Then trade the put spread..Read up on Box arbitrage..

Sounds to me like you may be an index wing buyer..Are you aware of your portfolios beta?

Is it just me or does it seem a wee bit aggressive for "a new trader,mistakes abound" selling 200 AMZN 1865-1860 put spreads for .425?? If nothing else,you got some big gonads

The pee pee joke was a tough act to follow! I am the one attempting to transition from a vol trader to more directional in nature.. Wile I am 100% down with what you prescribed IC,I dont see him as a delta hedger.. IMHO,he would be better off running IB's optimizer and understanding why the...

Good F-n grief..I traded with him on the Amex way back when..Its mind boggling that he became a success story

I could be wrong,but he strikes me as more of a directional guy than volatility trader. Not saying he shouldn't understand options,I'm just wondering why he's wants to go down the delta hedging path... He mentioned backtesting various option strategies and price action but couldnt find any...

IC, I think you are barking up the wrong tree when it comes to delta hedging/trading your gamma.. Why do you want to go down that road??

And there are those rare circumstances when the stock never recovers...

Sweet...Good luck!!

Are you affiliated with Deus Ex Trader??

800 x 1600 in the SPX is a small market making activity?? Where do you get your flow from?

I can only speak for when I traded on desks. It was a while ago,and typically the order flow left us short vol up the wazoo.Not many smart guys pound the wings..Those that did went the way of the dinosaur... It seems like a very tempting trade,but not at these levels..Short gamma in size down 4...

20 percent wide 1 x 2?? Why so far OTM??

Yes,I ballparked the "theoretical edge"...Its not linear on a vol drop Yes you are correct,i screwed up..Your apx edge should be the 5 vol handles x 4,assuming you continuously delta hedged and realized 10 vol..Good catch.. FYI,the trade you are bringing up was 60% of "our" business,except we...