This was the post that started the slinging. I have a problem with people who take perfectly good threads and crap all over someone's strategy, and an even bigger problem with someone suggesting you hedge your own acct against a client's. Maybe that's the way they do things in Asia or wherever Zen is from. Optioncoach has been good enough to share with everyone a valid and viable strategy for those who are interested.
We don't troll the scalping threads peeing on their ideas. If Zen had factual concerns, he could have posted them. Instead he suggested that the best use of the strategy is for client accounts to keep yourself from blowing up. I certainly hope he is not managing money for anyone.
Quote from yenzen:
This is the kind of stuff that is ideally suited to OPM. I cant even tell the neophytes reading this thread what a train wreck strategies like this can turn into in a fast and illiquid market. The spreads on index options products have widened considerably even as the volatility has dropped off the planet. At least with OPM, u hedge ur own blow up potential in attempting to constantly game the markets for nickles and dimes. In fact, I would go further to say that this is one of the more "crowded" strategies around these days. Notice that the majority of top performers on the Barclays Managed Fund Index have been index premium sellers. Success begets mimicry and alot of guys have been out there selling index premium driving down volatility to a point that is pretty dangerous.
Senor Zen
We don't troll the scalping threads peeing on their ideas. If Zen had factual concerns, he could have posted them. Instead he suggested that the best use of the strategy is for client accounts to keep yourself from blowing up. I certainly hope he is not managing money for anyone.
Quote from yenzen:
This is the kind of stuff that is ideally suited to OPM. I cant even tell the neophytes reading this thread what a train wreck strategies like this can turn into in a fast and illiquid market. The spreads on index options products have widened considerably even as the volatility has dropped off the planet. At least with OPM, u hedge ur own blow up potential in attempting to constantly game the markets for nickles and dimes. In fact, I would go further to say that this is one of the more "crowded" strategies around these days. Notice that the majority of top performers on the Barclays Managed Fund Index have been index premium sellers. Success begets mimicry and alot of guys have been out there selling index premium driving down volatility to a point that is pretty dangerous.
Senor Zen
