How legit is options selling?

Discussion in 'Options' started by nooby_mcnoob, Jan 14, 2019.

Is option selling legit

Poll closed Jan 21, 2019.
  1. optionsellers.com

    31.6%
  2. Yes

    63.2%
  3. No

    10.5%
Multiple votes are allowed.

  1. Sure, write me a 2 page essay why I should enlighten you for free. Most people who want something for nothing usually end up being bad traders so maybe I am saving you from yourself.
     
    #11     Jan 14, 2019
    MACD and nooby_mcnoob like this.
  2. The hacks don't *just* say sell when IV is high. They say sell when IV is high relative to what you expect realized volatility to be. The problem is (and I think this is why you see so many people selling this model) is that the market has caught on to this discrepancy and IV / realized volatility is very close to 1 these days.
     
    #12     Jan 14, 2019
  3. Yes, but the cardinal rule is hedging; either in the underlying or against other options. Do not look at the amateur idiot's at optionsellers and convince yourself that shorting premium is not practical.
     
    #13     Jan 14, 2019
    MACD likes this.
  4. Double-spaced, size 12 font? :)
     
    #14     Jan 14, 2019
  5. Options do seem very automatable. Down the rabbit hole again...
     
    #15     Jan 14, 2019
  6. I should add: I haven't been able to find any significant IV-related discrepancy for any recent period of time that would make it possible to profit off of an options selling strategy. Doesn't mean it doesn't exist, might just mean that I need better scanners.
     
    #16     Jan 14, 2019

  7. The scanners you built/bought are like a snail trying to race a cheetah compared to you competing with Citadel/Optiver/Akuna to find arbitrage opportunities. If you don't think option selling is a profitable strategy than you chose the correct username.
     
    #17     Jan 14, 2019
  8. Automation requires something of a model focused on an index or higher level products, I am sure it is possible but more on the quant level I think...
     
    #18     Jan 14, 2019
  9. I always build, otherwise I don't understand what is going on.
     
    #19     Jan 14, 2019
  10. bone

    bone

    The options traders that I saw do really well at prop firms were making markets in options on financially cleared OTC products and then hedging them with analog exchange futures typically. In other words - these were not spaces crowded with ten of thousands of market participants (the OTC Swaps that is).
     
    #20     Jan 14, 2019
    cvds16 likes this.