Sweet Bobby's Journal

newwurldmn · Mar 20, 2021

Sweet Bobby said:
Hello there,

I may not have been clear on the website. We have fostered a total of 16 kids. Four of those needed a forever home so they NEVER left and are still here. We adopted those four plus our daughter, Abby, who was adopted from Guatemala. We have five children all together ages 4 - 16.

Ah.

Saltynuts · Mar 20, 2021

Sweet Bobby said:
A common misconception about my trading style is that I trade the Karen way. As you may recall from my previous thread regarding Karen, I developed a Karen/tastytrade hybrid method of trading that continues to evolve. I never think that I have learned everything. I am a constant tweaker of the strategy.

The current evolution of the strategy is very simple and I employ 4 tenets:

1. Sell premium
2. With high probability trades
3. Manage risk (I have a series of hedges in place)
4. Rinse and repeat

It's boring as hell, but it works well for me. It's amazing what a traumatic experience will do for a person. I was in the hospital for a toe amputation at the beginning of the pandemic. It was scary as everything! The hospital was in turmoil. I came out of that experience as a better, more tamed down Sweet Bobby.

I'm not as combative as I once was. This is a concentrated effort, but also a benefit of my current medication schedule prescribed by my psychiatrist. Without the meds, I go back to being a horse's ass.

I appreciate your kind words, and wish you all the best!

Sweet Bobby

Got it Bobby. So you are still profitable selling options for premium? This thread here is just for shits and grins to try something in addition to that?

Thanks!

jsp326 · Mar 22, 2021

Sweet Bobby said:
My market timing usually sucks. But in 2020, I closed all of my short premium positions and utilized my version of Ron Bertino's black swan hedge. The only difference is I begin the trade in a diagonal fashion, with the long puts being in the shorter expiration.

So is 208% what you made on that hedge, or your total % gain for 2020? In other words, does it include other periods where you sold premium and had hedges in place? Also, do you know roughly how much your account is up or down for 2021--the account balance now compared to 12/31/20? Thanks.

Sweet Bobby · Mar 22, 2021

Saltynuts said:
Got it Bobby. So you are still profitable selling options for premium? This thread here is just for shits and grins to try something in addition to that?

Thanks!

I'm only as good as my last day of trading. So far so good this year. I made the mistake of getting into some individual stock names that took me down a bit. I'm on a good path of recovery.

destriero · Mar 22, 2021

Risperidone?

How can you reconcile your statement that you were up 208% on account with your net liq under $45K?

Sweet Bobby · Mar 22, 2021

jsp326 said:
So is 208% what you made on that hedge, or your total % gain for 2020? In other words, does it include other periods where you sold premium and had hedges in place? Also, do you know roughly how much your account is up or down for 2021--the account balance now compared to 12/31/20? Thanks.

208% was the total gain on the portfolio, but I only had the hedge on at the time. Once that occurred, I added some funds to the account and pretty much had an uneventful rest of the year. I haven't calculated total return after the funds were added, but I pretty much marked time for the remainder of the year.

Here's my personal $50k account for 2021 (started with $43k for the year, but added some funds). I got off to a good start and as usual, my sucky self chased a shiny thing. I started selling in some GS and BABA. I could have stuck with them, but I evaluated my performance and cut the losers and got back to what I do best. I'm back on a good path. The profit/loss below is based on net liq and not closed trades.

Nick Saban doesn't focus on the scoreboard (net liq) but rather focuses on execution of each individual play. I am prone to human error. Fortunately, I take time to reevaluate on a regular basis to keep myself in line.

Here is a week by week summary of CLOSED trades since the beginning of the year.

I have a target this year to grow the account by 50%. I'll probably take heat for that target, but I feel you have to set a high (but reasonable) target. It helps to get me out of bed in the morning. I anticipate keeping 25% of the premium that I sell. As you can tell below, I suck! I'm only keeping 13% of the premium that I sell for profits. Based on my current level of retention, I anticipate profits of $15,000 this year. Now that I have cleared my head and am back on track, I expect these statistics to normalize around a 25% theta retention. So far, total profits on closed trades is $5,206. (This does not include some losses that I take on my VIX call hedges. Maximum cost of my VIX hedge is 3% of the portfolio annually.

Thank you for your thoughtful questions.

Sweet Bobby

destriero · Mar 22, 2021

That's absurd. You returned 208% on a few grand in positions when your net liq was in the 30s. You made something like $6-$8K on the hedge but stated that you "made 208% on (your) portfolio." Your portfolio in vol = net liq. That's utter bullshit.

You would be shut down by FINRA if you were registered.

Sweet Bobby · Mar 22, 2021

Here's how undetermined how much option premium to sell on a daily basis. You can use either expected theta retention (25%)or your actual theta retention if you track it. I'm currently underperforming at around 13% theta retention.

Overnight · Mar 22, 2021

Sweet Bobby said:
Here's how undetermined how much option premium to sell on a daily basis. You can use either expected theta retention (25%)or your actual theta retention if you track it. I'm currently underperforming at around 13% theta retention.

That was a lot of work in a video to state that you want to make $400 per day. Oy!

I'm trying to reach that simple goal. Trying real hard, Ringo...to be the shepherd.

Sweet Bobby · Mar 22, 2021

Overnight said:
That was a lot of work in a video to state that you want to make $400 per day. Oy!

I'm trying to reach that simple goal. Trying real hard, Ringo...to be the shepherd.

So theoretically, if I sell $400 premium per day I should keep $100, if I manage it wisely. So far I'm only keeping 13% this year because I suck!