Karen the Supertrader - TastyTrade Hybrid Experiment

Status
Not open for further replies.
And I'm not even against premium selling. I do it, I think its great. But its something I do with small size in a cash covered basis. I believe a lot of traders fall for fools gold by thinking there in something magical on it, then they overdoit. Thats when they get in trouble
 
atrp2biz said:
Out of curiosity, is your entire portfolio cash secured with zero leverage?
More...
Most of my positions are outright longs, the short puts are cash secured with zero leverage. I just think being leveraged after a 7 year bull market fueled by 0% rates with the Fed on exit mode is just a bad ideia. Even if it works
 
Fair enough. I don't disagree. >95% of my portfolio are straight long-term longs while the rest is my options play money. I'll likely increase my play money allocation, but that's another thread.
 
I believe leverage makes sense to be applied counter cyclically. You do it when the levered players are hurting and the margin calls are all over the place. When things are fine and everybody is drinking from the low rate kool aid, you save ammunition
 
Pekelo said:
But you do close the position at one point (because, I dunno, you wanna buy food and pay for shelter), so you should subtract the tax if you did it for Bobby's returns. Oh yeah, and by the way the S&P500, a much more watched index only returned 4.7% since Apr 15th, so Bobby outperformed that nicely with or without taxes. I think doubling the S&P's performance was worth the trouble, but who knows, maybe it is too early to tell.
More...

yes leverage is the key here. No one buys and holds to pay monthly bills.
 
Daal said:
Thing is, it might not be right just to compare the results with the S&P500 return. His strategy has a degree of leverage and risk that being 100% long SPY doesnt. You will pretty much never lose 100% being long SPY, but you can lose 100% running a $600K notional risk on $150K. So there is some leverage in his strategy, if you apply some leverage to the S&P500 (either with futures, margin or deep ITM calls), then the returns will increase as well
More...

For a vol seller I think it makes sense to compare his portfolio to the SPX if his portfolio will lose less money than the spx in various gap scenarios.
 
Sweet Bobby said:
Daal, that's not really how I look at it. I stress the account for an up 15% move and then I stress it down by 20% with a 30 point increase in volatility. I don't perform a wipeout calculation.
More...

What's the pnl at those levels? Do you do smaller moves as well?
 
Status
Not open for further replies.
Back
Top