Impossible To Reliably Make 80%+ Per Year By Selling Puts or by Trading Option Credit Spreads?

[TDMA]

I'm talking about with margin, however that might be calculated. For example, $10,000 of a trader's own money, plus however much margin is needed to turn that trader's $10,000 into $18,000+ at the end of the year and so on.

Is this possible to do in today's market? I have seen at least two professional traders say that as of a year or so ago, "margin account requirements and other regulations" have made these kind of returns impossible now. What exactly does that mean (even though it seems pretty easy to understand)? Does anyone agree or disagree? Assuming that margin account requirements and other regulations weren't a factor, is it still next to impossible to make these kinds of returns with these two options trading methods (or any other methods)? Which kind of trading method is the most likely to real in these kinds of annual returns, even though they would likely be risky?

Thank you.

There are only two ways, timing of a rare event such as BTC $20k down to $7k but you cannot guarantee when they will happen, usually turn up like busses, these are capital trades.

The other is low timeframe trading, but there are very few professional options, let alone retail, this is income trading. Is it possible, yes, one of the small $5mn funds using Tesseract the past quarter booked +300%.

If you time it corectly you may also achieve those returns but highly unlikely, the traders are correct, however you cannot say "assuming that", it is all intertwined so the structure of the markets would adjust if one part was changed.

 

[DeltaRisk]

well, destroying the stops of all retail traders, one by one, is indeed legal up to now. i get the impression that this is what causes price movement practically all the time, that and stupid central banks doing their crap.

i could bet that the electronic communications of traders working for very large institutions read like the quotes i posted all the time, mocking all the retail traders they routinely destroy.


the situation you mention; profiting privately from privileged information must also be rampant, but i'm not aware of very many cases ever making it to the news. ¿do you have any examples to expand on your comments?

That’s purely market making.

I was just referring to former traders joining up together.

Institutional traders collude and have access to almost unlimited capital, you are correct that they can and do move markets all over the world. But, without colluding they’d have no control over the market prices. My point is, some traders are actual real traders who don’t need flow, or manipulation to be profitable.

When a strategy is discovered that produces profits consistently, no one shares that information. Money is money, and if you share your edge you won’t make money anymore.

 

[ironchef]

There are only two ways, timing of a rare event such as BTC $20k down to $7k but you cannot guarantee when they will happen, usually turn up like busses, these are capital trades.

Just curious, why you call these capital trades? Is that a general professional terminology?

 

[zdreg]

That’s purely market making.

I was just referring to former traders joining up together.

Institutional traders collude and have access to almost unlimited capital, you are correct that they can and do move markets all over the world. But, without colluding they’d have no control over the market prices. My point is, some traders are actual real traders who don’t need flow, or manipulation to be profitable.

When a strategy is discovered that produces profits consistently, no one shares that information. Money is money, and if you share your edge you won’t make money anymore.

"Money is money, and if you share your edge you won’t make money anymore."
if the edge is labor intensive and not particular scalable you can explain it but likely nobody will follow it.

 

[DeltaRisk]

"Money is money, and if you share your edge you won’t make money anymore."
if the edge is labor intensive and not particular scalable you can explain it but likely nobody will follow it.

Nice try. You’re still not going to get it.

 

[zdreg]

Nice try. You’re still not going to get it.

your response lacks an explanation.

 

[ironchef]

your response lacks an explanation.

Nice try zdreg.

He said it multiple times on ET: He made money hand over fist with his method but no he won't hand over his recipe to any anonymous posters on an anonymous internet forum.

 

[zdreg]

Nice try zdreg.

He said it multiple times on ET: He made money hand over fist with his method but no he won't hand over his recipe to any anonymous posters on an anonymous internet forum.

thanks for the info.