Lots of hedge funds that only trade options have post about 15-20% retune p.a. Is this the norm? If so, how can a retail trader like us expect to get rich quick by trading options?
how do you know that lots of hedge funds that only trade options have post about 15-20% retune p.a? Considering most hedge funds do not report there returns or strategies and those that do can opt to report only whenever they like. For most people on this board a consolidated all-in trade is the best strategy to maximize P/L. If it pays off then close your account and walk away.
Is that because the pool of options is relatively small therefore trading options is not very scalable? Particularly when considering the total daily volume of traded options divided by so many contracts in an option chain, it seems the individual volume of an option can be quite small/ thin in many cases. My impression is options trading should be good for increasing the expectancy of overall profits at certain opportune times, when integrating to normal non-options trading. Just 2 cents.