I have managers and clients selling index options earning well over 1% per month. Of course they will likely lose money the next big drop.
Nailed it. ("") In particular, the OP does not mention actual liability -- what dollars are put up for risk? Is this a sold naked option? Or a spread of $____ width? The question in not answerable as it stands. Howsomeever, I used to describe selling vertical spreads like this: 5%/week -- Heart Attack City 4%/week -- CBOE 3%/week -- Indianapolis (for the hometown crowd) 2%/week -- Asheville (roughly 500 miles SSE Indianapolis, vacation-y, but still connected) 1%/week -- Key West (another leg SSE, describing a nice straight line spectrum...straight to Margaritaville) That was back in the day when a VIX below 13 was a big deal. In 2017, 1% (what I've done this past year) feels really freaking AGGRESSIVE. (""). As a measure of prudence vs engagement, how many times can you roll troubled positions? If you start with $32,000, but only engage $1,000, you can double 5 times. 5 "parachutes". It doesn't take much imagination to turn that little metric into ~1% weekly return which, in a land of sub10 VXSTs, is........ really freaking AGGRESSIVE. [""]² "...Back in the day," weeklys provided fairly reliable income. In 2017, I have learned to let some weeks "go by" (i.e., go unwritten); I have dipped into (debit) calendars; I have worked on analytic tools, ordered math books off eBay, written to old friends, GONE OUT TO LUNCH. In 2017, you've got to understand that 1% is a pretty fair return. {wiping brow, stuffing hanky into pocket, stepping down off stump...}
Everything in the world of rates and bonds and such is annualized by convention. Makes things easier for everyone.
Bought my first T-bill last month. Did the 4 week one with cash in my savings account. Will rebuy the next auction until I stop it.