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Is selling options before earning Good Strategy?
- Thread starter Cam123
- Start date
Wall of text = 734 words
Yeah. I should be buying NY Lottery tickets - some guy won a hundred million last year.
PS. The fact that you are not willing to seriously address the questions regarding the conflict of interest is pretty telling
There is no conflict of interest. We have been using this strategy for the last 6 years with great success and no dilution. There are plenty of variations of the strategy (different strikes, different expirations ect.) and plenty of stocks to provide enough liquidity.
P.S. Our members are focused on their education and how to become better traders, not on how much I make from subscriptions. I suggest that you do the same. Hatred and jealousy are bad for your health, they will eventually kill you. Open your heart and don't be jealous and close minded about success of other people.
P.S. Our members are focused on their education and how to become better traders, not on how much I make from subscriptions. I suggest that you do the same. Hatred and jealousy are bad for your health, they will eventually kill you. Open your heart and don't be jealous and close minded about success of other people.
Many things might eventually kill me. This job might kill me eventually too.
I am an institutional PM so we play in different sandboxes. Nor do I harbor any jealousy, it’s great that you have figured out a way to make a buck. However, it’s very upsetting that your way involves preying on people who don’t know any better (apparently you feel ok about suggesting that someone would pay 20% per year for your service, that alone is a travesty). My dislike, though, covers most trade subscriptions seller, not only yourself. Personally, i think this segment of the industry has to be regulated as strictly as the financial advisors are.
I can go in detail about this alpha, capacity, market maker approaches etc but I can see that any argument will be rebuffed by “we have a track record of broker screen shots”. So if anyone does want to know my opinion about this strategy and some other approaches to event trading, feel free to send me a PM.
Your dislike of the industry is completely understandable. 90%+ of service providers are scammers and/or dishonest people who will tell you whatever you want to hear. We let our members to decide if we belong to the 90%+ or not.
Preying on people who don’t know any better? On the contrary. Our members are paying us for options education. They don't look at it as percentage of their accounts, but as a tuition fee. But people think it's okay to pay for any other education, but not okay to pay for trading education?
We don't make any unrealistic promises. In fact, I would support regulation of the industry with both hands. If it happens, I would get rid of 90%+ of competitors. After all, I cannot really compete with service providers who promise people to make 1000%+ per year with no effort.
I believe I provided full description of the straddle strategy and how it works. You don't believe it works? That's fine. But instead of making an intelligent and civilized argument, you chose to attack me personally.
I find it ironical that you are talking about ethical aspects. As PM, I can say the same thing about you. What is your motivation to manage other people money and charge them fees instead of managing your own money? Especially considering that 80%+ of all fund managers don't even beat the index. Why when you do it it's okay, but when I charge people for education, it is not ethical?
Speaking of hypocrisy..
I am not a fund manager, just a lowly vol arb PM. However, the investor in this fund (its a single investor) as well as investors in the funds I’ve worked for before are large institutional investors who knew the business and understood the risks. Could you say that about your clients, especially the ones that have a 10k account?
I only get paid when my trades make money. Is that true for you with respect to your clients’ trades?
A big portion of my compensation is reinvested into the fund, so I have skin (even foreskin) in the game. All fund managers/founders have at least 50% of their net worth invested in their fund. Is that true for you?
If I have a down year, I get fired. If I blow up, it’s unlikely I’ll find another job. Is that true for you?
My track record for the last 10+ years is audited and available to any prospective employers. Besides that, I am known within the industry via former colleagues, employees or employers. Could your prospective clients get the same due diligence?
Lastly, I don’t know if you are truly qualified to provide people with “education”. That’s my personal opinion. I realize that this is your living and you will defend it adamantly. So I am not going to argue further and leave this thread alone.
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I was referring to your question "The crux is the motivation to sell subscriptions instead of running this strategy". Same as yours to manage other people money instead of managing your own.
To answer your questions:
Yes, our members fully understand the risks. We make sure to point them to the relevant articles:
- Are You EMOTIONALLY Ready To Lose?
- Are You Ready For The Learning Curve?
- Why Retail Investors Lose Money In The Stock Market
- The Risks Of Weekly Credit Spreads
- Can You Really Make 10% Per Month With Iron Condors?
Yes, if I have a down year, I get fired. In fact, I would probably lose 90% of my members much earlier than having a full down year. Last year I had 2 losing months and lost significant portion of my members. So yes, my performance is directly related to my compensation, much more than yours.
Yes, 90% of my trading account is invested into SteadyOptions and Steady Condors strategies.
Am I qualified to provide options education? That I will let my members to decide. It seems like most of them think I am - otherwise I would not be in business for 6 years, with highest level of members satisfaction in the industry.
If 90% of the industry are scammers, it doesn't mean that all service providers are scammers. But you decided to make this assumption about me, without knowing me or doing minimal due diligence. I will leave it to your conscience.