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I can't imagine a sane market maker that would want to trade something like that.

I would imagine that statistically most penny stocks have to be overpriced (just like most options are). Makes you wonder what information advantage one has to have to achieve a high success rate in this strategy

First, you should clarify what is your primary risk - is it theta/gamma or vega? That is, what are you afraid of - bleeding out or changing levels of implied volatility? Your risk mitigation will depend on the answer above. If you are really long gamma and, for some reason, want to stay so you...

You know, the ones past their expiration date? Can be bought real cheap sometimes!

This ETF sounds like voodoo. I'd not touch it with a six foot penis.

That is not true most of the time.

A rich scoundrel seduced and betrayed me!

Every strategy loses alpha sooner or later. The only real answer is to diversify your income streams - some money in the market, some in rental real estate, maybe invest into some smaller business. There are no miraculous strategies that will last you a lifetime. Apropos the OPs strategy. Short...

What are they? I am significantly past the OPs numbers and yet I can't figure out how to walk away from it. The health care alone is 30k (after deductible) per year unless you are employed and can get into a group plan. Once you add a reasonable cost of living, even in a cheap location, you...

I think the right answer is "how much do you spend?" Someone who's spending 20k a year can comfortably retire on with a nest egg of 800k. So maybe the answer is to cut expenses rather then try to come up with better trading strategies.

No, dude, they just misspelled it. It's a dentist - "Hell Dental"

The reason to quit a day job is to have more time to do something else. One of the allures of "passive income" is the "passive" part - spend a little time doing it and play the rest of the time. PS. I recon the OP is in his early 40s - that's when the urge to get off the treadmill is the...

I think you are confusing expected returns on capital with retirement portfolio income. You can't generate income of 10% on a simple equity portfolio (unless you have a steady source of insider color or something). In case of this guy, he'd want to take out X dollars out of his retirement egg...

You worst case scenario is either an overnight scandal (e.g. VRX-style) or, even worse, a correlated market drop due to some macro-news. Not an impossible scenario. This said, if you pick rich vol, diversify and control the overall exposure there is no reason why this would not work. Personally...

LOL. The whole thread is just ...

Ok, so are you suggesting the same thing I did, which is trading delta against the options?

Sorry, you want to early ex your options as a way to take profit? That instead of covering delta? Mind explaining why so and why do you think that's what "big players" do?

Indeed. I am just saying that his comments on firms only offering MM opportunities is misguided.

I can't imagine any vol-type strategies that can't be incorporated into an MM framework. Unless you are a long-short type of guy with strong sense of fundamentals, any option trader with true alpha should be able to transform his strategy into a market-making "lean on an edge".

If there is no liquidity in the options contract, nothing prevents you from trading delta against it. After all, you are long convexity.