Profitable Options Traders - Long Term
- Thread starter Palindrome
- Start date
It was $110 on $1k...and I don't think it's going to last thought the next round.
You just described me and my method: A monkey throwing darts at the option chains in a bull market.
You are basically saying I am too lazy to read. No, just too ignorant.
I will go back and study the fly threads.
I trade Equity Options when I have time. Primarily I trade Futures. I opened a small account in February to see if I could isolate the return trading just Options, and I try to mirror my options trades in other accounts by also trading them there.
The account was set up with $30K. I took an $8K drawdown into April. It's now about $44.6K
The nature of most of my Options trades are directional. Occasionally I write Covered in the other accounts, but because of the size of this one I cannot write naked here and have no stock positions in it to write covered.
So it is almost purely Directional, occasionally a spread here and there, and it has about a 49% Return since February.
The account was set up with $30K. I took an $8K drawdown into April. It's now about $44.6K
The nature of most of my Options trades are directional. Occasionally I write Covered in the other accounts, but because of the size of this one I cannot write naked here and have no stock positions in it to write covered.
So it is almost purely Directional, occasionally a spread here and there, and it has about a 49% Return since February.
Ever wonder why us retails that traded directional are winning since Feb? I don't think it has anything to do with skills:
Until we can figure out how to profitably trade non directional, we will always be at the mercy of the market.
Maybe, maybe not. However I provided an example of one account that is devoted to just trading options. A account set up in February just to provide an independent statistic for myself.
Personally I've been trading as a full time occupation since 1991. There are good years, bad years and okay years. If the Market since February wishes to enhance my profitability it's fine by me.
You have my respect. I have only been doing it since 2010, the current bull market and has no illusion about my skills.Maybe, maybe not. However I provided an example of one account that is devoted to just trading options. A account set up in February just to provide an independent statistic for myself.
Personally I've been trading as a full time occupation since 1991. There are good years, bad years and okay years. If the Market since February wishes to enhance my profitability it's fine by me.
Personally, I think (as a community) that traders of all stripes have to quit thinking of "The Market" as a fixed regime, but more as a slow-moving weather system that, 6 months from now, may present a different trader-facing climate than had been seen in the prior 5-10 years.
Not to hijack the thread or anything, but when a daily ATR pops from 15-20 to 25-30, but IV maintains in a 9.0-12.0 neighborhood, and IV<HV on regular occasion, it will just suck to be an option seller.
So, despite solid performance for the past 5 years, I'm looking to long/short momentum trades in the market -- equities and the U.S. indices -- via old standards like ADX and even MACD. [Nice paper results; and "green" so far in toe-dipping current trades. Historically, 7-10 day holds were profitable, 2-3 day holds were for losses. Interestingly, the look-back parameters (in both the ADX and the MACD) are rather consistent for the indices, but appear quite unique by equity. "Huh!" My working explanation is that there is one regime trading the indices, while a different regime is trading each of the equities.]
Tick-scalping used to work -- then it stopped. Momentum trades used to work, but then I started (seriously) in option credit spreads, and I lost simply track. Options (credit spreads) have worked well, but now, *not* so well. Right now, momentum trades look very good. (And to be fair, tick-scalping conditions look *much* better than for years.)
The takeaway? Have multiple techniques available; have objective measures for when to trade each technique; be flexible and responsible in your immediate market outlook, and do not plant what the market *tells* you will be a hard grow.
I have very few trades this year that aren't looking to exploit this. But I feel like the tide is just starting to shift in favor vol sellers...mid to late August felt like we hit a critical mass that marked the shift (I really hope I'm wrong I this...but it seems the greener pasture word is out...probably time to find a greener-er one).