Best Remote Options-Focused Prop Firm...

Quote from sle:

It is a form of reverse dispersion, no question about. I know people who do this sort of stuff, even. The return target looks totally unrealistic, I think your cash returns are going to be around 5-7% p/a and on average you are going to outperform in a selloff (assuming you are buying index vega and selling street gamma).
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with a sharpe of around 1...
 
Quote from newwurldmn:

with a sharpe of around 1...
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Yeah, thats about right. This said, a strategy like this might be a good part of a balanced portfolio of strategies (truism alert).
 
Well, I won't argue with the "is the return too high" part, but the comment about the volatility of the P & L is something I wanted to know about. The positive about the strategy is it's natural positive expectancy. BUT, the nreturns can be a little lumpy.
 
Quote from sle:

It is a form of reverse dispersion, no question about. I know people who do this sort of stuff, even. The return target looks totally unrealistic, I think your cash returns are going to be around 5-7% p/a and on average you are going to outperform in a selloff (assuming you are buying index vega and selling street gamma).
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Don't know the lingo: street gamma? individual stock gamma?
 
Just checking in, did not read all the posts.

Leverage on Leverage is just not something that happens in the world of professional trading. Leverage on equities, no problem, leverage on options, not so much.

FWIW,

Don
 
Quote from Vol Guy:

Question: What are the best remote options-focused prop firms that will let you trade your own strategy?

I'll admit it. I'm new to this world (prop trading). I have a strategy that has been borne out of a decade of investment experience, as an equity trader, analyst, and portfolio manager. I'm in the process of reinventing myself from a long-term investment guy to an options trader. I've seen my strategy best described as a "reverse-dispersion strategy". I don't think this description is entirely accurate, butwhatever. BUT, the strategy needs more capital than I have to execute properly.

What are my options (sorry) in the prop trading world? Not enough hour in the next month to read all the prop firm threads, although they ARE very informative.
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several months ago, I just directly phoned several prop firms from a "list" I collated from names mentioned throughout this website. when all is said and done there is "only" one prop firm that is options focused- Maverick Trading. other firms sometimes imply that they do, but when you call up and speak with someone, they admit they really don't. I can't tell what options strategies Maverick trades(vertical spreads? butterflies? calendars? backratios? directional? non directional?)because I'm guessing that's up to the discretion of the traders who work there.
 
Quote from bs2167:
Any delta hedging involved? Just let the calls expire or roll before that?
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No, the idea is to pick a portfolio of stock with limited upside and let it ride. For practical purposes, in the form I've described it, it's a collection of covered calls protected with longer-dated index put.

Quote from bs2167:
Ballpark for the ROC if this is done properly?
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Return on capital depends on the size of your testicles, i.e. depends on how much you gonna leverage yourself. The strategy has pretty low Sharpe ratio, so caveat emptor.

There is a number of similar strategies, all more or less falling into a mix of vol-arb and stock picking.
 
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