Monthly Income Generated

Quote from atticus:

Why is it that the "safe 10% monthly returns in any conditions" types never seem to mention their risk beyond two deviations?
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I would venture to suggest it's because they don't know the risk involved beyond 2 x SD. If they ran a 3 (or more) SD adverse move together with a 30% IV shift I think they'd no longer be describing their 10% monthly returns as "safe".

A 10% per month return is certainly achievable, but it's far from safe.
 
Some very good posts here. Thanks

I normally do credit spreads -both puts and calls.

My target is 1% every week. When I have achieved that I stop fot that week, My available funds overnight must never fall less than 60% except in expiry week when I might allow it to go upto 50%.

I trade only european style options which give me enough time for adustments. Mainly I trade FTSE1000 (Z) and ES end of month expiry which is european style. I only trade near month and this gives me two expiries to use my full capital

I still want to improve by going to some other product which is not co-related. Any suggestion is most welcome and much appreciated.
 
Quote from atticus:

Why is it that the "safe 10% monthly returns in any conditions" types never seem to mention their risk beyond two deviations? I find it hard to believe there is all this low-hanging fruit at 1:1 risk.

10:1 risk in verticals is not safe under ANY definition you'd like to propose.
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agreed. there is nothing safe about what i do or the others here. i spend every day trying to build long option positions around my shorts. after the current drop my short puts are 7.5% otm.

risk of ruin is large. in my case, i am using a smaller amount of margin compared to those with bigger balls than i, long options above and below in the same month; but a 10% move would still be real bad......
 
Quote from day7793:

I never said I was in 9/11/2001. I was making lot of money in real estate and mortgages at that time. Stock market wasn't too great as I remember and dotcom bust was too new.

I had been during the market drop on March 1, 2007. That is what my statement is about and the 400 point drop didn't fizzle me.
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In this case you haven't been in the market long enough to say that 5-10% per month can be made safely and consistently. You probably would have jumped off a bridge if you were selling options on Sept 10, using your "safe" strategy.
 
Quote from deviltrader:

In this case you haven't been in the market long enough to say that 5-10% per month can be made safely and consistently. You probably would have jumped off a bridge if you were selling options on Sept 10, using your "safe" strategy.
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All those selling puts....how are you feeling today, folks? Was it worth those few premies you collected?
 
Quote from Profitaker:

I would venture to suggest it's because they don't know the risk involved beyond 2 x SD. If they ran a 3 (or more) SD adverse move together with a 30% IV shift I think they'd no longer be describing their 10% monthly returns as "safe".

A 10% per month return is certainly achievable, but it's far from safe.
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I'll add that a 3 sigma VaR is a tad worse than a 10% loss.
 
Quote from lindq:

All those selling puts....how are you feeling today, folks? Was it worth those few premies you collected?
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Long gamma > short gamma this week. Of course if one already was short gamma, better not puke those positions or scalp enough intraday to pay the drawdown....
 
Quote from lindq:

All those selling puts....how are you feeling today, folks? Was it worth those few premies you collected?
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i'll give you a quick summary. sold long 780's aug(er2) closed 745 shorts. original premium on 745's were 5pts closed at 7.60. 780's were legged into @ 3 pts, sold @ 17.10. very small net loss overall because more short than long.
been there before many times. maybe some day it will catch up , but i continue to hedge better imo monthly. to think, i was worried about my short calls (all closed today)....
 
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