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Did you ever ratio, up to a max of 1 x 2 to cut down on theta??

I left Wall Street for the same reason..Not my smartest move in hindsight:) I'm back now,and the funny thing is I enjoy it more than ever,but I don't start at the screen all day

If he loves trading,why not go to every Investment Bank,Hedge Fund,headhunter and take any job on a trading desk.... I know times are different than when I broke in,but if you can get your foot in the door,you are halfway home.

You are one of the few who made good money and at the same time are intropective enough to question how and why you succeeded. My only issues were you long and leveraged and not 100 percent aware of how the money was really made..

Im curious as well.. Im halfway there,which is why I dont want to manage a short vol book and am hopefully making the transition to more of a directional trader. Cant bear to watch the screen all day..

Your problem is you are too smart,and it appears you were never a knucklehead like the rest of us:) In the embryonic stages of development,guys love to sell those wings...thei idea of adjusting isnt delta hedging,its roll down in larger quantity or maybe if they are cagey,down and out.. I...

Non direction is an implied market call... You are betting that you are as fast as the market... At this vol,ill bet that the market is faster than you:) With that said,I think you are hoping to understand options well enough to choose "optimal" positions for the given vol environment..

I probably should have been more clear... IMHO,in this vol environment,the market has taken away the "easy-er" money..That being selling puts,straddles ,aggressive ratios,and most definitely selling index upside... The sale of 10 delta puts in this vol environment affords you no wiggle room...

Hi there,havent traded SPX in a while,so I am not sure of the bid offer spread.Why wouldn't you trade the future instead,or trade the ATM synthetic? In your example,it looks like you left out "put", as in short put...

The truth is I see alot of me in him... I shudder at the things I used to do,at the level of "stupidity" mixed in with a touch of infallibility.. Im not sure how long he has been trading,but he has the same tendency as all premium sellers. We dont look to maximize profitability,we look to...

Thanks buddy..So it seems like you are good for one down and out roll..With the leverage you employed 20 percent isnt bad at all,especially if you were taking offers and hitting bids.. I would not sell calls against your puts unless they are jacked.Again,if its your first tempatation,its...

Sweet that you realized 6-8 lots was a bit big for your account size.. Just out of curiousity,on a 49k account,how many short options do you think is optimal? If you are truly disciplined as have an order in to close the position at the market down X percent or at hard stop option price,I dont...

Wheezoo, you are introducing continuous delta hedging which as far as i can tell is not what the OP does...He sells 10-14 delta puts,50 days out and does not trade delta neutral.He is always long,and in the examples he posted taking down 20x the notional if assigned. The Goldman paper answers...

Keep in mind that as you go down the option chain,the percentage difference between fixed strike changes increases. Stock at 10,the 10 strike vs the 9 strike "width" is much less than the 5 strike vs the 4..

Not sure exactly what you are saying,but IMHO the paper illustrates that there is no great edge to selling vol.More importantly it illustrates that OTM is no better than ATM,and the skew/OTM isnt some miracle drug... I thought the paper was very insightful from the perspective of trading...

IC,IMHO,you hit the nail on the head,and are offering valuable insight. As we know,the easiest path is seldom the correct path.Selling garbage premium is the "easiest" way to make money. Markets have become very efficient,vol is very low..In my "younger" years,I was a massive premium...

Goldman had a research paper ,The Art of selling Puts.. http://optionsoffice.ru/wp-content/uploads/2016/03/Goldman-Sachs_The-art-of-put-selling.pdf Its a bit old,and vol was higher so returns were higher than they would be today.The study was a 10 year period,selling ATM vol.The returns were...

You keep on trading in the same manner you did in the past,and you will blow up... I mistakenly thought you traded the SPY,which is 1/5 of the ES... Your toast

Ahhhh,hes trading the ES.. My bad..I thought he was trading the SPY..Now it all makes sense...i couldnt figure out how in the world hr put up those returns in the SPY selling an 8 lot on 10 deltas..thats why i kept on babbling about having to sell 30 vol plus and roll it as well. So what he...

You see any way he could have done 40 percent in 4 months selling 10 delta options???