options . . . very hard to make money

[sonoma]

Quote from rew:

Anyone who want's more margin on short option trades than his broker will give him is begging to get blown up. Be prepared to have to sell your house when the bill comes in.

I'm not suggesting being stupid. A limited risk position, at least by the end of the day, is the only sensible one to end with. Even more sensible is to be positioned with distal long gamma. Your position still ends up short gamma/vega.

To the point challenged, however, leveraging to a greater extent than Reg T is one way to make possible the returns mentioned (~ 15%), and all without being irresponsible. Of course, the leverage issue is not the important point. A talented eye towards position management is the sine qua non. There are other nuances such as skew, efficient capital use, model imprecision- all have their exploitable features under the right conditions - but these are irrelevant without proper position management. My congrats to SIV66.

 

[rew]

Quote from atticus:

Some of you implying that he's using a ton of leverage. I don't get the math you're using as it would be nearly impossible to turn 6k in 200-300k with any significant leverage on naked options under RegT.

The only other trader I know (personally) that produced better number than SIV66 was the German who used knockout options with zero-leverage. There is one other guy from ET that went from 200k to 3MM in short vol as well, but didn't produce the % return, but is obviously also a great trader.

If anything, you should be ecstatic that it's possible, albeit unlikely (to be repeated).

I didn't claim that sellindexvol66 is using lots of leverage, that was sonoma's suggestion. For sellindexvol66 to have the long term success he's had it's very clear he must be keeping a careful eye on his worst case loss, so I doubt he's going overboard on leverage.

What sort of instruments have knockout options?

 

[sellindexvol66]

Quote from sonoma:

I'm not suggesting being stupid. A limited risk position, at least by the end of the day, is the only sensible one to end with. Even more sensible is to be positioned with distal long gamma. Your position still ends up short gamma/vega.

To the point challenged, however, leveraging to a greater extent than Reg T is one way to make possible the returns mentioned (~ 15%), and all without being irresponsible. Of course, the leverage issue is not the important point. A talented eye towards position management is the sine qua non. There are other nuances such as skew, efficient capital use, model imprecision- all have their exploitable features under the right conditions - but these are irrelevant without proper position management. My congrats to SIV66.

so guys you do need all the deep understanding of risk, size, greeks, etc. what i may add is i have found that all nighter work ethic and a real edge will do it. what i earn is a result of that and do not think sacrifices have been made to get here.

i am showing you my last statements ever on et with these points.

1) i do not simply sell call and puts and basic spreads.
2)my margin has never gone more than 25% of available
3) being hungry and willing to obsessively work imo is part of my gains.

the august earning to me are a great example because we had some very vol times with lots of selling/ selloffs, yet you can see i did well. btw, a typical month for me. in other words the trades are not spx spread trades, lol

that's all i am gonna say. i have work to do now.

 

[sellindexvol66]

Quote from sellindexvol66:

so guys you do need all the deep understanding of risk, size, greeks, etc. what i may add is i have found that all nighter work ethic and a real edge will do it. what i earn is a result of that and do not think sacrifices have been made to get here.

i am showing you my last statements ever on et with these points.

1) i do not simply sell call and puts and basic spreads.
2)my margin has never gone more than 25% of available
3) being hungry and willing to obsessively work imo is part of my gains.

the august earning to me are a great example because we had some very vol times with lots of selling/ selloffs, yet you can see i did well. btw, a typical month for me. in other words the trades are not spx spread trades, lol

that's all i am gonna say. i have work to do now.

 

[atticus]

Quote from sellindexvol66:

lol $100k in Aug.

 

[atticus]

Quote from rew:

I didn't claim that sellindexvol66 is using lots of leverage, that was sonoma's suggestion. For sellindexvol66 to have the long term success he's had it's very clear he must be keeping a careful eye on his worst case loss, so I doubt he's going overboard on leverage.

What sort of instruments have knockout options?

Virtually all asset classes have OTC knockouts available somewhere.

 

[darwin666]

Quote from ammo:

you can keep reading your 300 books and mathematically trying to win,... the big boys have got your system in spades hiring all the math gurus out there and crunching the data,.....figure out the direction this thing is going and capitalize on it,...... the big boys can figure that out but they take days to turn the fleet...... by the way ,they collect ungodly amounts each month on short puts and calls.....,66 figured that out and hedged option wise,..... how to maximize his return with a limited amount of capital,.....you are a barnacle on a ship, .......we all are,.....you dont need 300 million???(pick any number) in return to average 10-15% for your customers....,they do,....sounds like you are thinking,analyzing,way too much,enough that you can take what little knowledge you have of others and make judgements,.....your acct is the big picture,..... not anyone elses,.....and that thought in a nutshell should be guiding your thought patterns.....,you can study all your life on how to build the perfect trading model,..... or you can just figure out a so-so one that makes tons of dough,....the risk will never go away,.....learn to trade out of a position when your wrong,....and you will have nothing to worry about,....don't let your mastery of the science be your excuse for ,......i will make big cash when i figure this one more thing out.....good luck ..rew..i mean that

THIS POST is +100 the best FREE advice I have seen in a long time. KUDOS +++

 

[rew]

Quote from darwin666:

THIS POST is +100 the best FREE advice I have seen in a long time. KUDOS +++

Well, I thought that advice was worth about what I paid for it.

 

[Emilio_Lizardo]

Quote from rew:
Well, I thought that advice was worth about what I paid for it.

Rew, if you're envious (I know I am!) of SIV66's returns, why don't you try to reverse-engineer his strats from his past posts?

Concentrate on past posts where he interacts with Atticus, IV_Trader, OptionCoach, and other "ft types who helped [him] out."

Shouldn't be too hard, especially if you can figure out what his previous handle was.

 

[sellindexvol66]

Quote from Emilio_Lizardo:

Rew, if you're envious (I know I am!) of SIV66's returns, why don't you try to reverse-engineer his strats from his past posts?

Concentrate on past posts where he interacts with Atticus, IV_Trader, OptionCoach, and other "ft types who helped [him] out."

Shouldn't be too hard, especially if you can figure out what his previous handle was.

please don't imply anyone else helped me out. atticus and i talk a lot and he gave me some places to look for edge that helped. it is exactly as he said in a previous post. no one else helped me who posts here at the present time.

iv and oc know what i do. it's not really their cup of tea i have gathered. anyway good luck..you won't find discussion of what i do anywhere here..nor will you in the future.

i ask those guys who know me to not to talk about what i trade.