Short strangles via Tastytrade....

Discussion in 'Options' started by tradingpoker, Feb 14, 2020.

  1. Really? They're recommending? Can you point to where they're doing that?

    I've been watching them for most of a year, and - like everyone else in the financial space - they're damn near paranoid about pasting "this is not a recommendation" all over the place. They talk about what they've done, not what you're supposed to do.

    I will note that NO trading info of this sort, from anyone, should just be swallowed wholesale; you need to do your own research, use your own brain, and do lots of testing at small scale until you're satisfied that it works for you. I've tested what they present for myself, and have my own conclusions about it; anyone who hasn't done that, or doesn't understand the larger context in which these trades are supposed to be executed to be successful - again, true of any sort of trading - really can't have a meaningful or valid opinion.
     
    #11     Feb 14, 2020
    MACD likes this.
  2. So - you make definite, imperative comments on things that you know nothing about. Good to know; thanks for filtering yourself out so early.

    [plonk]
     
    #12     Feb 14, 2020

  3. I do. I am a pro. I did pretty well last year (6.7MM on 5MM cap).

    dest.
     
    #13     Feb 14, 2020
    TooEffingOld likes this.
  4. traider

    traider

    What is your long term sharpe ratio
     
    #14     Feb 14, 2020
  5. Robert Morse

    Robert Morse Sponsor

    tradingpoker-IMO, the option strategy should rarely come first. You should have a process to "predict" that a symbol will trade in a direction or range, or not do something. Then, review the current option markets to determine the best way to take advantage of that opinion with your risk comfort level. Those that randomly sell or buy spreads are just betting current prices are wrong.
     
    #15     Feb 14, 2020
    MACD, ironchef, zdave83 and 2 others like this.

  6. No idea, but I would guess it's over 3. I haven't imported my IRA data but the contributions were under $100K (lifetime) so all of it was organic growth. My taxable accounts mirrored the IRA.
     
    #16     Feb 14, 2020
  7. gaussian

    gaussian

    Ah, and there lies the rub.

    Sosnoff and his merry band of shills sells this as the ultimate strategy to instant profits. Yet, they never seem to talk about hedging risk off. Almost like their entire show is to make commissions...

    Being net short options is certainly a strategy that works and can be very profitable but the "tastytrade method" is only a sure winner for the brokers. Consider reading some books on options trading before taking Sosnoff's word for it. It is simply not as easy as sorting an Excel sheet by IV rank and throwing dollars 10-20 deltas away at exactly 60 DTE on the top 3-5 stocks.
     
    #17     Feb 15, 2020
    traider, tradingpoker and Real Money like this.
  8. traider

    traider

    They employed a data scientist to do some research. It's hilarious to watch the data scientist say that nothing works after millions of backtests, then realize that he has to shill as well and backtrack, saying things like oh selling options is the only thing that works.
     
    #18     Feb 15, 2020
    Diamond Geezer likes this.
  9. jamesbp

    jamesbp

    Have you seen their Research Team
    ... full of schoolgirls who have almost zero trading experience
     
    #19     Feb 15, 2020
    Real Money likes this.

  10. This all did cross my mind and makes sense on the commission front, agree
     
    #20     Feb 15, 2020