22 things you need to know about trading from Vic Niederhoffer

http://elitetrader.com/vb/showthread.php?s=&threadid=105045

There's a thread from that time that mentions he was short these puts. We can verify approximately the price they were trading at. In any case according to Wikipedia, his investors still ended up in the end. So while shorting premium and eventually biting the big one as all premium sellers do, he is a model for money management.

Matador had a final return of 89% over 6 year: IRR of 11%. Given the volatility it's pretty terrible, but for a premium seller going into the financial crisis it's not bad.

The previous fund did better because he was able to avoid the blow up for longer, but again his investors ended up okay (aside from the volatilty)because he gave back so much capital.

He's overrated however. There are many guys who are more consistent with similar amounts of capital. John Paulson (before his 2008 jackpot) was a consistent 20%er and he never blew up.
 
Quote from Butterball:

The interesting thing is VN was pissing on other traders as 'misguided' and 'amateurish' every opportunity he got but was propagating non-sense like the above at the same time.
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I remember a couple of years before his 2008 blowup VN wrote this on his blog about Jesse livermores book, "how to trade in stocks".

"seems the work of a madman, it is no wonder that shortly thereafter he committed the final act of suicide, thus sparing his followers from further losing much more money. None of the rules are tested, and no concept of consistencies with randomness, and no attention to the grind that the house takes or the drift of the market. A sad chapter in a sad market life."

Perhaps VN could also 'spare his followers from further losing much more money'.
 
+1

Quote from atticus:

"Ramping up risk" in a $3 put should be in the DSM-IV for psychiatric disorders. Why is it that other managers have not had to resort to selling garbage puts? And now he's done it 3x with catastrophic results.

The term is cognitive dissonance. There should be a pic of VN with the definition.
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Guys it is good to see some big traders activities and trading methods but why we have to follow them. Just keep trying at your own things and you will create a profitable system for you. You very own trading system.
 
(“He is his own worst enemy,” Nassim Taleb, the author and derivatives trader, says of Niederhoffer. “One of the most brilliant men I have ever met, and he wastes his time selling options—something nobody can have any skill in—and it leaves him vulnerable to blowing up.”)
 
Quote from marketsurfer:

You speak with authority on this $3 put claim--- where does this info come from and what's your evidence? surf
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The thread from 2007 where you pretended to be an authority on all matters pertaining to VN and you were proven to be nothing more than a spokesperson.

I'm sure that he appreciates your loyalty as he doesn't tolerate dissent, but you really are a pathetic suck-up.

Move to Palm Beach and find your own identity.
 
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