If you don't mind me saying this: With your chart, you just argued that net long call options during this period is better than spreads?this is a very interesting and informative thread, thanks to all who have contributed.
as for the idoneity of mrs. Megane going back to systematically selling put spreads, i think that that strategy will go back to working 100% of the time for another long stretch once market noise dies down and a couple more all time highs in the indices of the usa are recorded.
here is a chart of the futures overnight sessions (18:00 to 9:30) for the last 12 months and it is transparently evident at what point did janet hand the baton over to jay. around that time some gigantic capitals closed the largest anti volatility positions that had been open since at least 2012 and the overnight ramping up services were paused for 10 days or so, but they have now been practically completely reestablished.
with the nq it is possible to double one's capital every 250 points or so, therefore if one is holding a long position one is bound to do really well. keep in mind that from january 2017 to january 2018 the nq moved 2100 points higher and more than 6000 points higher since 2009. i'm trying to think of some strategy with options that would allow me to go for around 400 points higher on the nq while limiting possible losses and then i would scale out almost completely.
Beginner in selling Bull Put Spread
- Thread starter Megane
- Start date
Personally I don't believe that it is wise to base your whole options portfolio on selling premium. In order to get decent returns in selling premium, you need to use leverage which means taking excessive risks.
This usually doesn't end well - look at the The Spectacular Fall Of LJM Preservation And Growth
I believe that it is critical to implement mix of strategies, including selling premium, buying premium, volatility based strategies etc. Of course gurus like Tom Sosnoff will tell you that selling premium is the only way to make money with options. Don't believe them.
We have dozens of members who started exclusively with selling premium, but found out very quickly that you need to add other strategies to the mix.
Here are testimonials from some of our members:
This usually doesn't end well - look at the The Spectacular Fall Of LJM Preservation And Growth
I believe that it is critical to implement mix of strategies, including selling premium, buying premium, volatility based strategies etc. Of course gurus like Tom Sosnoff will tell you that selling premium is the only way to make money with options. Don't believe them.
We have dozens of members who started exclusively with selling premium, but found out very quickly that you need to add other strategies to the mix.
Here are testimonials from some of our members:
Sosnoff comes from the old generation of (pit) traders...who were just simply scalping, or arbing, their client orders.
I'm willing to bet he can't actually trade his own personal account for jack from his own computer at home,
, 
There are varying degrees of the word 'trader' -- but very few...are the true, rare traders....traders who can exponentially grow their own personal account into a small fortune.
Last edited:
Agree.. and yet he has hundreds of thousands of followers.Sosnoff comes from the old generation of (pit) traders...who were just simply scalping, or arbing, their client orders.
I'm willing to bet he can't actually trade his own personal account for jack from his own computer at home,
i agree. since 2009 the best strategy has been to go all in long. there have been some small hiccups during that time, but it seems like normal service has always been resumed.
as for whether net long call or long spreads are better at the present time, i don't know, i'm still just learning about trading options and in my case i need to start trading with the strictest discipline and cutting losses in time. also, the very recent flash crash - correction of january - february 2018 showed that at some point the exponential inflation in asset prices has to stop and will likely reverse violently, so having a plan that would withstand gigantic movements down in prices was always vital but at this time it is even more than ever.
Wow so many contracts for a potential profit of 392 dollars. But your potential loss is 8,000 dollars if the trade goes against you.
Definitely not the types of trade I would enter.
I have entered trades where my max loss is 90 dollars, potential profits unlimited. Realised profits 320 dollars.
You should study more and look at other methods. Too much risk for not great profits.
So far the wins have been greater than the losses. Wins between Feb 12 to 22.
2,119.75
YTD
Adj gain ($) 18,183.01
Last edited:
Wow so many contracts for a potential profit of 392 dollars. But your potential loss is 8,000 dollars if the trade goes against you.
Definitely not the types of trade I would enter.
I have entered trades where my max loss is 90 dollars, potential profits unlimited. Realised profits 320 dollars.
You should study more and look at other methods. Too much risk for not great profits.
So far the wins have been greater than the losses. Wins between Feb 12 to 22.
2,119.75
YTD
Adj gain ($) 18,183.01
well, mr. prc117f, that's very interesting.
if you don't mind the question, ¿if are not trading short put spreads what strategies is it that you are trading then?
How did you come up with a max profit of $392? Based on the price of Amazon stock today if I sold a bull put spread at 1250/1245 strikes I would get a max profit of $80 and max loss of $9,920.
At any rate this is way too much risk for such a tiny profit.