How to make a killing with options

One way would be to get a job as a trader for Sesqhanna.

You would not keep the spoils but you would learn the real ins and outs of trading and after a few years start making good money.

Plus doors open for good Sesqhanna traders should after a number of years they move on.

Caveat: Most people who apply will not be hired.
 
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Pekelo said:
https://www.reddit.com/r/path%3D%252Fr%252Fwallstreetbets%252Fcomments%252F73lpwu%252F

Description of his approach:

  • short term - get in, get out - nice profit, SOLD

  • don't commit 100% of funds, always have cash

  • pair trades - I'd be long MS calls but have some puts on the XLF

  • take a break (1-2 days) and don't trade when I kept making wrong decisions; give up on loser companies

  • target high dollar stocks via options (a $5 stock up 10% is okay, but a fucking longshot ... whereas a mere 3% move on a $100 stock makes a big difference in options and can easily happen)

  • avoid options with high premiums baked in although sometimes with names like AMZN, or GOOGL (wanted to buy GOOGL 940s to start this week) it's hard to avoid. But those googs were trading at ~ $2.75 while the stock was still $13 away from the strike ...okay, fucking Friday they were worth $33. That's what I mean from my last bullet point - GOOGL had only a 3% move but that option went x10
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:thumbsup::thumbsup::thumbsup:
Hard to get that type of returns going short calls and short puts without leverage. Maybe Karen should have learned from you.
 
Live your dream and don't let anybody talk you out of it. Couple years of well documented risk adjusted returns and there will be plenty of opportunities.
 
Trading in casino mode and a few get lucky. Problem is they always end up giving it back since the reckless nature of taking on way to much leverage always catches up to you. Better to have a real good risk mgmt plan - dreamers get slaughtered.. or was that pigs?
 
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traider said:
What aspect of options are you trading?
Are you directional and using them for leverage?
Or do you model volatility and trade vol?
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Big options gains are made from simple directional plays. o_O -- not those weird, complex strategies or selling premium.

Watch the movies Pelham 123 2009 and Hacker 2016. the ending perfectly sums up what I'm talking about.
The numbers and results are greatly exaggerated, as with all movies -- but the point or lesson is there and made.
 
comagnum said:
Trading in casino mode and a few get lucky. Problem is they always end up giving it back since the reckless nature of taking on way to much leverage always catches up to you. Better to have a real good risk mgmt plan - dreamers get slaughtered.. or was that pigs?
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Not exactly. Proper management will take care of it, along with becoming a professional. Everyone underestimates that a broker can and will change margin, not so with a clearing firm.
 
Not for me, but I do not mind gambling with options for a tiny fraction of your portfolio. Like say you take 1% of your portfolio and then slice that up in 10 pieces of 0.10% so you are able to make ten very risky but high reward options trades during a year. That can boost annual returns if you are good at picking the right opportunities.
 
777 said:
One way would be to get a job as a trader for Sesqhanna.
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They are probably one of the better "lower tier" firms, but by no means a gateway to success. Working for a market maker has a bunch of drawbacks, main one being that you are mostly learning how to make money using their (very good and fast) infrastructure.

One would probably do better and learn more working directly for a PM at a top tier buyside shop (anything with 5+ yards AUM). The exposure is far more diverse and in a few years one can shoot for a PM position themselves
 
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