Covered calls (naked puts) is a crap strategy. No two ways about it. Don, I don't think the other poster was referring to your enveloping strategy off the open but rather what the guys do at pairco. Pair trading and naked put selling (CC's) have the same risk profile.
Bright Trade
- Thread starter trader29
- Start date
Covered calls (naked puts) is a crap strategy. No two ways about it. Don, I don't think the other poster was referring to your enveloping strategy off the open but rather what the guys do at pairco. Pair trading and naked put selling (CC's) have the same risk profile.
I was kinda suprised seeing thats how Bob Bright trades. I have seen some people get decimated and have careers end that way. That type of trading eliminated a lot of people when the nasdaq went from 5000 to 2500 yrs ago. It seems he was in prayer mode. Definetly gambling. Like Tudor Jones says..."Losers average Losers".
Bob has been a member of the cme for decades. And, yes, he gets the great rate...I don't and netiher does anyone else in the Firm. That's a big part of his edge.
No, that's not how he's made big money the last couple of years.
And, he has a $100+ million portfolio to hedge if he chooses.
And, can't find the post questioning the PVN trades above (sitting in a hotel room this weekend, maybe I'll check when I'm back in the office)...but the numbers reported to Trader Monthly are direct from him (including the GM stuff, which we're happy to say have done a great reversal so far this year, thank heavens, LOL...
You guys have to realize that every email, post, IM, PM, yahoo note, ET ad, etc., is given to the SEC...It would be pretty stupid to make up stuff...we've been accused of a lot of things, but being stupid is not one of them. As for me, telling the truth seems to keep my "senior moments" to a minimum, LOL.
And, Cash answered goodfellow already I guess...geez, I never know where people get some of the stuff they hear about us.. you think maybe from "compeitors"...oh well, that's why we come on, to "claryfiy"...
Check the facts, call me, search the regulators, and yes (for Mav's sake) "check the balance sheets", LOL....
Heading off to see Kenny Rogers at the Orleans in a couple of hours..."gotta know when to hold em"..
;Don
done correctly with enough information combined with proper management of capital--martingale can and does work. do not be afraid.
surfer
I think when commissions play a role in establishing your "edge" then you really don't know what the hell you are doing. In the 60s and 70s commission was never an edge for any successful trader. It was even more prohibitively expensive in the 20s yet successful speculation did occur.
SOrry to say but low commissions should be desirable but by no means considered part of your "edge." If you end up, year in and year out, net zero then you are either trading too much or you are looking for really small profits per trade. In either case, you have a problem...
BTW, clearly, I am not a scalping trader.
SOrry to say but low commissions should be desirable but by no means considered part of your "edge." If you end up, year in and year out, net zero then you are either trading too much or you are looking for really small profits per trade. In either case, you have a problem...
BTW, clearly, I am not a scalping trader.
(Sorry, I guess I missed this, didn't see the thread on the homepage).
The answer is yes and no. When traders pay 10 times what the CME guys pay, it's a bit different than 10% or 20% difference in equities pricing for seasoned traders.
(I do get the sarcasm, very good, LOL).
Don
Don what kind of rate could I get doing 3+ million shares a month? I know it all depends but just give me a ball park, thanks.
Give me a call in the office...702.739.1393 (mid trading day is good). Be prepared to let me know a few additional components such as amount of capital you want to put up, and the amount you need for overnights (M&A, pairs, etc.). Reference ET when you call.
Don