Options on Futures
- Thread starter SellingNaked
- Start date
So, as your account grows do you guys suggest to keep opening new brokerage accounts as needed to keep the cash below 500k?
Or is there a point where it makes more sense to to just stop opening new accounts and move the funds into real estate etc.? I started out selling options but am now logging into more than one account to manage the trades, and I am starting to make mistakes as I also have a full-time job and am unable to check the accounts as often as I think I need to.
Or is there a point where it makes more sense to to just stop opening new accounts and move the funds into real estate etc.? I started out selling options but am now logging into more than one account to manage the trades, and I am starting to make mistakes as I also have a full-time job and am unable to check the accounts as often as I think I need to.
The rally in vol is hardly an explosion. There will probably be a much more painful time for short vol positions in the next 12 months (if history is any guide).
No. You can bleed to death before vol spikes a lot.
"High" and "low" with regard to volatility don't mean much in isolation. It's all relative to premiums and whether the option writer is being adequately compensated for risk. I can't predict volatility change any better than price change. I don't pay much attention to skew either.
I prefer selling options because I can craft a strategy that makes money most of the time. Some people call it selling insurance. The trick is to survive the occasional payouts. A lot of people say selling options is too risky. But the risk of being short an option is exactly the same as a position in the underlying under SPAN. It's just a lot easier to overtrade and blow up an account using options. I figure it's my job as a trader to manage the risk.
That's the way I see it. If I have to choose, I'll take the occasional spike over the slow bleed. I don't have a strategy for the slow bleed, and I'm not smart enough to read the future.
I wasn't trading options in 2008, so I can't say for sure how I would have fared. I think I would have lost money, but I also think I could have survived it.