Hello everyone. Have you heard of http://www.options-trading-system.com The sell short puts, and based on their history, it seems amazing... I just wanted to know if anyone used their service.
I took a quick look. Seems too good to be true, so I would be cautious. I would want to know for an account of $100,000, how trades would be allocated, what returns would be for the entire account, not for each trade which is confusing, and what verification they have for past "returns." If they are "great" at a buy and sell signals in any broad based index, I think I would rather use that for an ETF or futures strategy which is easier to enter/exit and back and forward test than using options. Then after confirmation it works, consider adding options.
Interesting points Robert! They claim i can autotrade. But with slippage, it´s almost impossible to get the same entry price, right?
You can get roughly the same return profile by buying an ETF, the WisdomTree PutWrite ETF (PUTW). https://finance.yahoo.com/quote/PUTW?p=PUTW
Returns are totally unreasonable: The main website assumes percent of premium which is ludicrous. They have a margin based website but even that shows abnormal amounts of risk. No one gets 100percent of their trades right. If they are so smart why does their website keep serving ads for real estate appraisals?
Winning 99% of the time selling options is possible, for example if you simply sell 1000-strike puts on SPX. With a little TA you can sell higher strikes, say 20% below the current index value - and you may almost never lose, especially if you exit with only 25% to 50% profit. Selling only at high IV would enhance this further. But all this doesn’t mean you’d make much money - your margin and the risk would be very high, so you could maybe sell couple such puts each month/week/whatever period and make 2%-10% per year on total capital. While a single loss could cause serious damage. I don’t know what and how they trade but there is a lot of room to make valid claims for a system that may not be that useful. Anyway, here is a review of that system from 2007: https://www.marketvolume.com/technicalanalysis/publications/2007_03_SC.pdf
James The Tool Cordier sold deep Out of Money calls... On Margin! LOL His investors must be wiping there asses with his book
the only way to sell naked is to sell calls and roll them, if well capitalized and smart you can never lose. trade 100mm like it was only 10mm
"We" can only control risk and even this is not 100%, you can wake up one morning finding out of company you sold hundreds of Puts been using asbestos in Baby powder. You can have unlimited correct trades in a row even in Indexes, but if you need to get out of brick that is falling, you won't be only one. I have never meet one person who not had "falling bricks" experiences, it comes down to next time the splash does not take whole account and more, and becomes more a trickle of overall account. You have to have the answers before the question in this game, first one is risk of ruin. Many will agree not to risk more than 2% of your account, and in longer term trading or even swing trading, you can make much more than the risk. "Bulls make money, bears make money, pigs get slaughtered" Good trading to all.