Question regarding selling puts for premium
- Thread starter masudhossain
- Start date
Condescending? That's the pot calling the kettle black my friend. Many of the most successful trend followers in the world use very low frequency trading. The fact that you do not know this is telling. This type of trading was around long before guys like Covel jumped on the bandwagon. I don't care for his books. They lack useful detail.
Just out of curiosity...why are you even in the option trading threads?
And your telling me that the insurance companies with hundreds of billions AUM are mistaken in offering guaranteed return, equity-linked insurance products using very similar derivatives.
While the top 3 Trend followers who can't be more than 20 billion AUM, encompassing greater than 50% of Total assets managed are actually trading a more reliable strategy.
Do you realize that these top trend followers average a win rate of 30%-40%% and drawdowns averaging 30% as well. Do you know the inverse relationship between win rate and potential drawdowns?
The thread was posted on the main page. I saw a person with a legitimate concern and I offered my opinion based on many years of options trading.
Ah, yes, the "only 30%" comment. I knew that was coming. That is a relatively safe 30% with TEMPORARY draw downs. These men are entrusted with BILLIONS of dollars because they can "only" average 20%+ in client accounts.
The first Hedge Funds Market Wizards book 'Market Wizards' spoke of these things two decades before Covel jumped on the bandwagon. You shouldn't get so personal with people who don't agree with you. Emotions have no place in trading.
They're not more inherently dangerous than any other leveraged/margined instrument when used reasonably. Just because you lack self control doesn't mean the rest of the universe does.
I don't think you understand options entirely. There's more to options than simply punting around steamroller OTM naked puts or credit spreads.
Haha Jesus. In the words of the great McEnroe: You *cannot* be serious?!
That is because during the beginning of my trading journey, over 20 years ago, I blew accounts, yes plural, and it was not because of options, was because of inexperience just like your comments, pure inexperience.