Anybody trading LEAP options?

[KINGOFSHORTS]

I evaluate risk many ways. I know the representative underlyings well, historical information I look into lots of data and work out my own personal models on the differing models.

I sell different contracts on different equities,SPY etc.. to provide a hedge on my other positions.

I would have outstanding 5-10 different contracts (usually about 150-200 contracts a month) Some leaps, lots of options with 30 days or less and some with 15 days or less remaining.

I collect the premiums and will close my positions as I feel they have provided the most profit possible, I will leave some money on the table most of the time once I get what I feel is my fair share.

I am alway evaluating my positions every day and I spend several hours a day working them out looking at all potential exit points, risks etc.. Always evaluating.

I always end up with net gains, some months a little less others a great amount.


Just like running an insurance company, you always make money, even if you have to pay out the occasional claims etc.. in the end you have a net profit.

Run it like a business, take strong risk management.

The last few months have been particularly great times to profit from the big fear factor

 

[short&naked]

Option sellers usually end up paying out one big claim and blow up. Name one option seller that has lasted more than 20 years.

 

[dagnyt]

Quote from KINGOFSHORTS:

I always end up with net gains

It's possible to be consistently profitable with careful risk management. But if you say that you ALWAYS have a profit, you are simply not telling the truth.

Mark

 

[zdreg]

Quote from KINGOFSHORTS:

Those MM's are idiots. I am 1 penny away from their ask, take it or leave it. the other guys are offering a penny less.


I refuse to budge. Better that penny today because tomorrow I will bid a penny lower.

bird in hand worth two in the bush.


Gonna go watch Judge Judy.

anybody who calls the jewish bridge players and italian streetwise MM's idiots is obviously clueless.
anybody who refuses to"budge" is fighting the tape. it is a sure sign of a losing position.

based upon your posts you do not have a substantial amount of capital.in the market. .
it is also doubtful that most of your capital is allocated to selling leaps. comes bill time you are probably selling more and more short term options

it is however quite possible that u made some money in the past months as the vix has declined from extreme levels which might not be seen again for a long time.



the difference between you and the MM's is that you watch Judge Judy and they grab judy's ass after working hours.