Yes. And here is another disclaimer from the same page: Q: Will I be able to replicate this performance if I subscribe to SteadyOptions and/or Steady Condors? A: That depends. If you just started trading options, then most probably the answer is NO. It will take time. I know this is not what people want to hear, but that's the truth. If you have some experience and spend the time to learn our strategies, then I see no reason why not. In fact, some of our members do better than our official performance. Q: What is the impact of commissions on performance? A: As you can see, even with cheap broker, I still paid over $16k in commissions in 2015, which reduced the performance by ~20-25% per year. Commissions is the cost of doing business, but you should do whatever is possible to reduce them. Brokers and Commissions discussion can help you to pick the right broker. It is very important to maintain realistic expectations. We would never promise to "double your money every month with no effort" or some other absurd claim.
sle, I am mom and pop retail, trading my own money full time "for a living". I don't understand why a good professional trader has to trade other people's money?
This seems obvious to me - you cannot execute large orders in the same way as retail orders. Institutional investors often have awful execution because of liquidity.
Correct. Also some options are simply not liquid enough to execute hundreds of contracts. What is possible for 50-100k account sometimes becomes very difficult for multi million dollar account.
Yes. I just realized most equities have low volumes so a large institutional trader will have difficulty with this strategy. Then it begs the question who is on the other side, most likely it will be the MM? If so, they are not dumb (like me), why would they make the trade for me to make money?
I'm not going to pass judgement on the performance claimed since I have no clue if the numbers claimed were real time and factual. What I will say is that I have looked at the concept of buying straddles pre earnings many times and there are far too many losers. Perhaps someone with an edge can do better. To see what this looks like, set up some near the money straddles for a stock about to have an EA. Include some with strikes that were near the money a week and two weeks ago. Then graph the two week straddles (intraday, not closing prices). Not many achieve anything. It's a tough road to hoe,
As I mentioned, you cannot just do it randomly. It won't work. You need to enter at the right time and the right prices. And when you compare ATM prices, you ignore gamma gains, which are responsible to significant chunk of the gains.
I am not smart enough to know who is right and who is wrong but your analysis is gold to me. I have been puzzled over this a long time and thanks to you this is the first time I understand the logic. So, if I can calibrate the base vol and earning spike vol, I can track the vol ramp. If it deviates from the "theoretical value", it is tradable. Perhaps that is how steadyoptions make the trades profitable? I appreciate any further comments. Regards,
MMs always hedge their bets and make money mostly from the bid/ask spreads. If you win, they don't necessarily lose. You can ask the same question when you sell covered calls. If your position wins, does it mean the guy who bought the calls from you lost? Not necessarily.