10% per month with options ?

Discussion in 'Options' started by trade2live, May 23, 2010.

  1. I saw a newsletter provider claiming to make 10% per month with iron condors. They say they do it years after years, occasionnaly they lose 30% in one month but go on to make 100% + per year .

    That doesn't look right to me , I understand the figures are calculated on the margin deposit but not being an option trader I would think in practice you don't commit 100% of your capital to each trade you make, that would be risking a blow up in case something goes really wrong such as Interactive Brokers liquidating your IC at crazy prices for a reason or another.

    Still just 5% per month every month would be like trading the holy grail , is it reasonable to expect such returns from that kind of strategy ?
    Ansbacher doesn't make such returns, just 30 % per year on average I believe.
  2. I know an investment company based in USA that has paid for past 6 years average profit of +103% per year (without compounded interest). They invest in property market around the world. Also I know a forex trader who guarantees 20% profit per month. So it is possible to earn 10% to 20% profit per month from various investments available.
  3. this concept has pretty much been beat to death from both sides on a number of threads in the option forum.

    from my own experience i have been trading just one side (BPS) of the ic and have averaged about 9% rom. BUTT, only with a very small % of my trading funds. also i am trading SPY so commish is also a big % concern. BUTT, i just look at a $ amount i want to target and go for it.

    i also realize i have had the wind of a very strong bull market at my back.

    the fear of a big drop is always there. i have it dialed in at 2x of my target profit. so even though it takes $10k risk margin to target $1k profit, i would plan to shut down the trade at 2x, or $2k loss, round numbers.

    my trades are written out per my trade plan. so far i have not had to take a loss. but i did sit out the last 2 option cycles (apr, may) because i did not like the market action or the credits i could get. i am looking to trade the jun cycle.

  4. that's a horrible site. I mean if they want to sucker you into subscribing, they should've said '1000% per year'. 100% per year is just not gonna cut it imo
  5. that sounds like a scam, 100% in RE in this world after all the fees, I don't believe it. As for the FX trader, I have never seen a manager averaging anywhere close to 10% a month, let alone, 20%. And certainly there is never any guarantee or it's a scam.
  6. In the real world it's very possible achieve a 5% gain on account value (per month) for a period of time. Perhaps 6 months, a year, even two. But in order to do so you're going to need a Black Swan like '07 to '08 and then a bull at your back like '09. But it's not going to happen with conservative option strategies like Iron Condors.

    In the newsletter world, returns like that are achieved from basing the gains on margin used or ruses like taking the gain on the highest profit day (or lowest loss day) of the cycle.

    You actually hit the nail on the head in that you can't commit 100% of your capital due to the risk of blowing up. You need add'l funds to adjust positions.
  7. OK how about my forex manager who has paid for past 9 years average profit of +3% per month or 35% per year (without compounded interest). He manages about $80 million.

    Also all the trading activities of the USA based investment company are processed by their reputable clearing agents in the USA such as JP Morgan, Citi and Merrill Lynch. They have been paying for past 6 years.

    I have a diversified investment portfolio which has investment programs paying high profits as well as low profits. If anybody is interested please let me know. I will be very happy to help.
  8. This is a great idea! I'm offering a newsletter as well as managed account advice. Since I've never done either, name your price - I'll accept it. And for those interested in collector's items, available inventory items include the TV I watched the '87 crash on, the pen I signed my margin call check with and a host of one of a kind things guaranteed to collect valuable real estate on your desk!

  9. my post was really to illustrate that some of the claims made here are just ridiculous. Again, I have never seen a FX manager making 20% per month on a consistent basis. And these guys are pro's, if you have made 20% per month understand your account size has helped and you won't be able to keep having this kind of returns.
    Now when you look at the average manager, you may be able to do better especially if you have a small account, the work involved however is significant but if you have the time and the motivation and the discipline you can achieve results as good or better than a pro.
  10. Some dumbass loser removed my last post so here it is again.
    Trade2live, you have no idea what is in my account, how I trade/methodology, or for that matter anything about me.
    So in the end, just another ET loser giving advice based on his own flaws and misunderstandings.
    Leave these discussions to adults and F$%& Off.

    #10     May 24, 2010