How to pick up pennies in front of the /ES steam roller - 2020

drcruz

drcruz

-OR- how to watch /ES paint dry

Hey All,

Time to put up or shut up. Time to expose my junk.

I sell options premium as my trading style and only /ES. My current strategy is OTM Broken Winged Butter Flies developed by Ron Bertino of Trading Dominion and the positions will be hedged using put back ratio spreads.

I'll put my trades on here in this journal. Not real ones but from my TOS Papermoney account. This paper trading account will reflect my actual trades but on a smaller scale, basically 1 tranche. With respect to Ron I won't be posting too many specifics (no deltas, no strikes), but I will show the T-0 line as a portfolio and individual tranches.

Too many smart guys here on the ET Forum with lots of money and years of experience think selling option premium is ABSOLUTELY NUTS. I will not argue in favor of premium selling, because I've only been trading options live for about 3 years. I'll just show my simulated positions. Between now and the zombie apocalypse I will either blow up my account (which will include my real account) or I will demonstrate my chosen strategy can show a profit.

Initially each position's goal will be about $600 profit per position, but each position is put on about 180 DTE (hence "watching /ES paint dry"). But I will put on a new position every month if I get the right signal.

Weakness of my strategy, the put BWB is a neutral / bullish strategy and we are in the middle of a bull market. I do not have a bearish strategy yet.
 
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Notice the account is ~$12K which I estimate is the minimum required
 
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Timing wise on the daily chart, because the market is down I may not put on a position today when market is open in U.S. Looking for market to close above the 10 day MA
 
drcruz said:
Too many smart guys here on the ET Forum with lots of money and years of experience think selling option premium is ABSOLUTELY NUTS.
More...
I don't think they are saying that at all. The pros are saying blindly, mechanically selling naked DOTM options with margin is ABSOLUTELY NUTS. They, and some of us amateurs are writing when the conditions are right.

As an example, if my opinion of the underlying is bullish, I won't write naked calls on margin.
 
Do you consider broken wing butterflies to be naked premium selling?

If so then I understand why you are so confused and also why you are putting words into everyone's mouths when we were all talking about selling naked puts or calls. that is not what you are doing so your comments were a little misleading as is your criticism in the original post in this thread.
 
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