cool. that's a very realistic and doable goal. how do you trade the futures? you dont have to get into details, but i would like to get a rough idea on how you trade it. Mostly with TA and Charts? or what type of trading do you apply for the futures? News driven?
Hi Mav, If you can successfully gamma scalp, isn't it better to do it with futures as they have less slippage? Can a trader expect to overcome the slippage/spread of options over the long term over many transactions, as can be expected in gamma scalping? To successfully gamma scalp, it means you think that you can profit by buying cheap CTM puts, for e.g., and sell them when they move up in price. If you can do that, why not do it in the futures? Thanks for your input.
The system is technical in nature but does not use technical indicators. I don't use charts. No fundamentals, no news. My trading is all volatility based.
No, you are not gamma scalping actively. You are simply trying to sell juice and inflate your credit with as little risk as possible. You cannot do this trading futures. Futures create too many hard deltas. When you trade options for a living, you need to make a decision day one. Do you want to trade hard deltas, or soft deltas. These two beasts are not the same.
Hi Mav Are you talking about vertical credit spreads or ratio backspreads to gamma scalp? daddy's boy
Hi Mav, Thanks for earlier answer regarding gamma scalping. I have read somewhere where you posted that in the LONG RUN, one can probably earn a return of 15-20% per annum employing a short premium strategy (if you are competent and know what you're doing) but here your goal is 5% to 10% per month. Can you explain the differences? Sorry if I have misread your earlier posts. And just to make sure; I am talking about returns on account as a whole and not only margin used.