Also, why not venture out onto other commodity options where the implied vol and therefore the premiums are higher e.g. oil future options?
You are missing the point. You are taking one single observation that did not work out and extrapolating it without merit. Victor tests everything, and I mean everything. You would be shocked at how many latent phenomena can be made manifest into profitable trades. The point is that markets are interrelated with the outside world, and many seeming subtle correlations do in fact have a basis that can be identified, tested, and exploited. It was a bet that did not go according to plan, but it was because Victor was operating outside his normal field of expertise. It seemed like a good idea at the time, but hindsight is so ever clear. Incidentally, Bo Keeley did have a good experience in Thailand, and many traders could follow in this methodology to identify a theory, develop a hypothesis, and take full advantage of it. I think we can all agree on this.
Visaria, That is a good point, we do in fact trade other contracts. We like the SPX because of many reasons (data availability and favorable skew and profound upward bias), but it is important not to limit one's universe. The universe is infinite, and so are potential trading ideas. It is also favorable to expand into other contracts because that limits risk, and it has the advantage of seeking non correlated markets. Limiting systemic risk is a key ingredient to successful trading. I hope you realize I speak from integrity and I am a Real McCoy. I do intend to help you and others, even though you insulted me many times over without provocation.
I included the edit above that you also make significant money on the put options' rapid theta decay, in addition to the option charm, delta, and vega. You can also scalp gamma at this time. Towards expiration, if I think the big houses will pin the underlying at a particular strike I sometimes balance out the short puts with short calls (turning it into a strangle), or maybe even turning it into an iron condor or doing a box or calendar. The possibilities are endless. Simply selling put options is actually quite complicated, and should be just one tool in your workshop.
Awww, great thread. Regardless of how mr Vic faired in the marketplace in the end, the indisputable fact remains that many great traders and money managers were taught by him. This fact alone should engender respect.
It's important to note that this site attracts mostly market fanboys and bashers who take out their significant anger on others. While a few real traders post. Most are fanboy or failed fanboy basher types who dream of trading again.
Just to make you all aware, Skittremblant is yet another Surf alias, a basher of the highest order . . . banned yet again.
Just to make you all aware, Skittremblant is yet another Surf alias, a basher of the highest order . . . banned yet again.