How to trade volatility?

Discussion in 'Options' started by ssp729, Sep 24, 2018.

  1. qlai

    qlai

    So what percent of your trading capital is allocated to this strategy? Or is this just a way for you to buy the dips in your long(er) term portfolio? Trying to understand if this strategy is just a small part of a larger method. Thanks for sharing.
     
    #41     Sep 29, 2018
  2. destriero

    destriero

    Ahh yes, an income estimator! This is brill. Imagine the free monies if you traded the synthetic, Bro!
     
    #42     Sep 29, 2018
  3. silver182

    silver182

    Yes to your last question..."small part of larger method"

    I at times I use up to 33% of my trading capital (margin), only when timing is correct! I don't trade options on entities that actually end up & stay in any of my portfolios for any length of time..."not my intent"...only when assigned (rarely) or for boosted dividend income at or near X-div day. No good option equidity that I know of pays dividends at or above 7% my minimum requirement for holding.

    I have always used my trading portfolios like a two edged sword. One side of that sword always provides dividend income each month..like clockwork! The other side of that sword using "margin power"... I borrow money from "option seller's" to do my trading. Of course the more margin power you have the larger the trades can be. Once I've acquired cash from trading.... I then convert that cash to increased dividend income, by acquiring shares in one or more reliable dividend producers.

    The prime thing all of my portfolios do is provide monthly income, like clockwork!

    I will include this screen shot to show I don't Bullsh*T...like a few on this blog do...
     
    Last edited: Sep 29, 2018
    #43     Sep 29, 2018
  4. silver182

    silver182

    Hey "of little help"...tried one just for grins...doing well but margin is only slightly better.. For sure better for the broker!..Kinda like Iron Condors..Wow the house loves them..for sure. I'd like to be known as a "Put Bomber" :)) ... that method works...
     
    Last edited: Sep 29, 2018
    #44     Sep 29, 2018
  5. destriero

    destriero


    You with PM = crazy delicious blowup. "Don't try that on the street."
     
    #45     Sep 29, 2018
  6. sle

    sle

    Well, first of all that moniker is already taken. Second of all, what he was doing was very different from your approach.
     
    #46     Sep 29, 2018
  7. silver182

    silver182

    Thanks wasn't aware of the moniker..just mentioning the approach...I like it!! In fact that approach was my first encounter with options....years ago...kinda like standing under the tree where my Eagles live:)) Of course when Uncle Sam does it many have there hands out...
     
    Last edited: Sep 29, 2018
    #47     Sep 29, 2018
  8. destriero

    destriero


    Dude, I am clairvoyant. I will give you a free glimpse!

    You're going to continue to short these puts and then lose it all within sight of tax-day. Not only will your hobo-ass be broke but liable for the prior year's capgains.

    Just picture me astral projecting over your hovel.
     
    #48     Sep 29, 2018
  9. silver182

    silver182

    Hello "OLH"
    "blowup"...you must be familiar with blowup's sorry about that.

    My TDA account rep called the other day said I was approved.."No problem"....I told him to cancel the request & reverse the computer setup, as I discovered with TDA "PM" affects trading platform's use from account to account. In fact PM uses other servers, something they didn't disclose... an IT thing...
     
    #49     Sep 29, 2018
  10. destriero

    destriero


    Of course--you cheated on the PM test! Now explain to me HTF you could possibly need help with the PM test?!
     
    #50     Sep 29, 2018