I'm not suggesting being stupid. A limited risk position, at least by the end of the day, is the only sensible one to end with. Even more sensible is to be positioned with distal long gamma. Your position still ends up short gamma/vega. To the point challenged, however, leveraging to a greater extent than Reg T is one way to make possible the returns mentioned (~ 15%), and all without being irresponsible. Of course, the leverage issue is not the important point. A talented eye towards position management is the sine qua non. There are other nuances such as skew, efficient capital use, model imprecision- all have their exploitable features under the right conditions - but these are irrelevant without proper position management. My congrats to SIV66.
I didn't claim that sellindexvol66 is using lots of leverage, that was sonoma's suggestion. For sellindexvol66 to have the long term success he's had it's very clear he must be keeping a careful eye on his worst case loss, so I doubt he's going overboard on leverage. What sort of instruments have knockout options?
so guys you do need all the deep understanding of risk, size, greeks, etc. what i may add is i have found that all nighter work ethic and a real edge will do it. what i earn is a result of that and do not think sacrifices have been made to get here. i am showing you my last statements ever on et with these points. 1) i do not simply sell call and puts and basic spreads. 2)my margin has never gone more than 25% of available 3) being hungry and willing to obsessively work imo is part of my gains. the august earning to me are a great example because we had some very vol times with lots of selling/ selloffs, yet you can see i did well. btw, a typical month for me. in other words the trades are not spx spread trades, lol that's all i am gonna say. i have work to do now.
Rew, if you're envious (I know I am!) of SIV66's returns, why don't you try to reverse-engineer his strats from his past posts? Concentrate on past posts where he interacts with Atticus, IV_Trader, OptionCoach, and other "ft types who helped [him] out." Shouldn't be too hard, especially if you can figure out what his previous handle was.
please don't imply anyone else helped me out. atticus and i talk a lot and he gave me some places to look for edge that helped. it is exactly as he said in a previous post. no one else helped me who posts here at the present time. iv and oc know what i do. it's not really their cup of tea i have gathered. anyway good luck..you won't find discussion of what i do anywhere here..nor will you in the future. i ask those guys who know me to not to talk about what i trade.