Martin Schwartz talks about losing $25m Feb 2018

Discussion in 'Wall St. News' started by ZBZB, Jan 1, 2020.

  1. RedDuke

    RedDuke

    Because it is very easy to collect premium while they time decay, the key is to manage what happens when the shit hits the fan.
     
    #81     Mar 19, 2020
    jordi742 likes this.
  2. In his autobiography, he pretty much said he was losing money for 10 years until he got his act together. I'm sure it was a bit more than just moving averages in play.
     
    #82     Mar 19, 2020
  3. guru

    guru

    Was it 41,000 or 14,000? The initial post says 14,000.



    It may not matter since if he sold naked calls then he might've been partially hedged using something else. But it's also possible they were just naked calls.


    Because it's a popular and powerful strategy to sell weekly UVXY calls, when it works.
    I don't know anyone converting this strategy to trading futures, which could be complex because UVXY is already based on rolling VIX futures. So UVXY does the rolling of VIX futures for you and its purpose is to make this easier and not need to trade futures. But I guess there are plenty of other futures-based strategies. If he used futures then someone else would've asked why he didn't short UVXY calls like many other people do. It's the simplest thing you can do. Again, when it works...
     
    #83     Mar 19, 2020
    jordi742 likes this.
  4. RedDuke

    RedDuke

    he made his money of insider info. If you read PitBull he camouflaged it there, but it was pretty obvious, when he was describing "inside skinny" or what ever he was called. Been a while since I read the book.
     
    #84     Mar 19, 2020
  5. Is that confirmed? I recall at least one other saying the same thing. I don't recall Inside Skinny. It's been a while...

    I thought he made most of his money day trading the pit traded S&P futures.
     
    #85     Mar 19, 2020
  6. RedDuke

    RedDuke

    Futures came later, initial capital was made trading stocks on Amex based on "tips".
     
    #86     Mar 19, 2020
  7. Aha. Well, that's news to me. :)

    I do remember mentions of Amex though. Options, I think?
     
    #87     Mar 19, 2020
  8. Overnight

    Overnight

    American Stock Exchange.
     
    #88     Mar 19, 2020
    Laissez Faire likes this.
  9. I seem to recall some newer interview with Marty where he commented that he probably would not be able to make money in today's markets, i.e., index futures, like he did back in the day. But don't take my word for it. Just something I seem to recall.

    Always liked the guy from both his own book and in Market Wizards.
     
    #89     Mar 19, 2020
  10. RedDuke

    RedDuke

    correct. Heard that too. He also covers it in his book, he found a pattern they worked for a while and then stopped.
     
    #90     Mar 19, 2020
    Laissez Faire likes this.