Short Options Seller - Extremely Successful!!

Quote from jones247:

I need your help. I'm trying to locate the username of an individual who was very a successful trader here on ET. I believe that he implied that his primary strategy was short straddles or short strangles. I believe that he had several years of 100+% return on capital.

I came across his posts several months ago... Although this is an extreme long shot, I'm hoping that it "rings a bell" with someone. I vaguely recall that he may have created a thread, but I'm not certain.

thanks,

Walt
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just wondering if he got his 100% return last year :D
 
a lot of those guys were only short puts or only calls,depending on the trend, so if he was short calls, he cleaned up
 
sure, it works until it doesn't... I understand that most traders warn against short option positions.
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Honestly, I've not heard a single successful option trader warn against short positions. Of course you should be on the short side of options trading, how else do you expect to make a profit in the long run?

The reason short strategies often times "work until they don't" isn't because they are short. There's nothing wrong with being short and even naked options. It's because sometimes people trade them unhedged and don't take into account tail risk. They say shit like: "no it's ok because I'm trading way out at 2 standard deviations" blah blah blah.

It's hilarious. I always remind them. It's called 2 standard deviations for a reason. It's because IT HAPPENS. If 2 SD moves didn't happen, they would be called "impossible deviations" :)
 
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