New Marty Schwartz Interview

[Fundlord]

Main takeaway Is he has switched from trading sp500 futures to just selling options and claims he had his biggest month ever last month that scared him.

He said anyone with even a small account should sell options because 95% expire worthless.

 

[Visaria]

thanks for posting. your comments are however out of context.

 

[blakpacman]

Good interview.
Marty says he's teaching his kids. Will be interesting to see if his kids can become top traders.

On indicators.... "It's a function of your interpretive skills."
Being able to teach an options course "and being able to translate that into money and profits is a whole different course of life."
Compares options trading to an algebraic equation with a number of unknowns.
Pyramiding into your position is risky.

 

[lindq]

I really hate to see anyone say anything positive about selling options. Reminds me of trading in 2000, when options sellers, including me, got taken to the cleaners.

All is wonderful in a bull market, and everyone is a hero. But the tide will turn.

 

[zdreg]

I really hate to see anyone say anything positive about selling options. Reminds me of trading in 2000, when options sellers, including me, got taken to the cleaners.

All is wonderful in a bull market, and everyone is a hero. But the tide will turn.

were you selling naked puts?

 

[newwurldmn]

I really hate to see anyone say anything positive about selling options. Reminds me of trading in 2000, when options sellers, including me, got taken to the cleaners.

All is wonderful in a bull market, and everyone is a hero. But the tide will turn.

Lots of long vol guys have blown up too. Lots of short stock guys have blown up. Lots of long stock guys have blown up. Every trading strategy has it's perfect storm event - its the investor's job to know what that perfect storm event is and manage it.

 

[blakpacman]

"In trading, if you're batting 50-60% (winning trades), if you're using discipline, you'll be making quite a bit of money."

 

[just21]

Marty Schwartz is selling credit spreads. He calls it a firewall.

 

[VPhantom]

thanks for posting. your comments are however out of context.

Care to elaborate?

 

[lindq]

were you selling naked puts?

Yes, I was selling naked. In the late 90s I got caught up in the mania of selling puts. Then - as now - the bull market was making heros of traders and investors who otherwise wouldn't have been able to tell a bid from an ask.

I initially talked to a then well-known options broker about my "new found" strategy of collecting premium.

"Don't do it," he said.

"Well, why not," I asked.

"Because shit happens," was his response.

It was good advice that I proceeded to ignore.