IMHO,only way you make money in "illiquid" option markets/names and complex strategies is pure luck... Im 101% with Mr Poopy as symmetrical Bflys are also not a great directional bet..You can be dead right but dead wrong.. Wrong trade for most pros let alone a retail guy
chef, stick to SN as you will get hurt in index markets. It's like the Chiefs playing NCAA D2. I'd suggest trading upside diagonals (local short gamma) in things like ARM. NOT liquid but you can capture some vol of vol if you're patient and aren't forced out on delta position.
Do a Google search and you will find this, back in 2018 I think: Hedge fund OptionSellers.com was recently forced into liquidation after making ill-timed energy market bets involving options. Per the Wall Street Journal, some client accounts ended up in a deficit, meaning they still owed the clearing firm after their principal disintegrated. The fund's manager, James Cordier, described his strategy in a book titled, The Complete Guide to Options Selling. Or, you can buy other books on selling options for income, free money, like Wall Street Money Machine... Gook luck.
Very true, I value your advice. If I use the same strategy in any other 10-15 years period I would have ended up a big loser. That is why I am gradually getting out, calling it a day instead of keep pushing my luck. Maybe just try day trading for fun. Take care.
If you can trade shares well then you can trade DITM and pay the small rent on the single for the efficiency of not paying the RegT/TIMS req on the share position. Personally, the utility of options is not in share replication.
Yes, somewhat different but still, luck plays a major role. I remember, back in 2016 I was printing money buying calls, almost any calls, no skills needed. Then, it all stopped.