Selling short straddles is like printing free money convince me I'm wrong

Discussion in 'Options' started by Saltynuts, Feb 10, 2021.

  1. ironchef

    ironchef

    Agree on both counts. Very few option trades are fire and forget.

    I posted some counter points just to show sometimes the obvious may not be so obvious that Elite Traders who can successfully trade directional can certainly trade straddle successfully.

    Best wishes to you sir.
     
    #51     Feb 12, 2021
    caroy likes this.

  2. Dude, are you seriously saying that MY post is a troll post? This thread I mean? LOL, that is hilarious if so. I CLEARLY explained the whole logic behind it in my initial post and subsequent posts. I advise you to re-read my initial post and my subsequent posts to completely follow it. Its not that complicated, just complicated in a very minor way. Good luck with that.
     
    #52     Feb 13, 2021

  3. "not a fire and forget trade".... LOL, like I said it wasn't in my INTIAL FREAKING POST on this thread???? You literally cannot make this shait up....
     
    #53     Feb 13, 2021
  4. MrMuppet

    MrMuppet

    Sorry...didn't think you were THAT (manic caps lock) stupid. So you were SERIOUS (manic caps lock) about this?

    Not only are you short gamma and short vega. By diversifying short straddles (wtf) you're also short correlation meaning that when everything comes down and correlation shoots up to 1 you have one big super nuke in your account.

    KIDS...KIIIDS...LOOK AT THIS GUY, YEAH HIM (manic caps lock and fingerpointing)...BECAUSE OF HIM IB KEEPS INCREASING MARGINS!


    No, seriously...your proposal is just bat shit stupid. This stuff IS (manic caps lock) complicated and not in a minor way. In fact it's way over your head.

    EDIT: sorry, I forgot to use the manic question marks..????????????????
     
    #54     Feb 13, 2021
    cruisecontrol and Atikon like this.
  5. Bekim

    Bekim

    We’re you selling short straddles last March?
     
    #55     Feb 13, 2021
  6. bobw

    bobw

     
    #56     Feb 13, 2021
  7. bobw

    bobw


    Every few years the market gets locked up or down and by the time the market opens back up your account is devastated.
     
    #57     Feb 13, 2021
  8. jbt

    jbt

    RFLMAO - the best post here:) It's a haiku of all YOLO trading
     
    #58     Feb 13, 2021
  9. taowave

    taowave

    And what sort of leverage would you disclose in your prospectus in order to attract capital in your Printing Money Hedge Fund?? You know,in order to acheive "ROI's of Hundreds Percents a year"..

     
    #59     Feb 13, 2021
  10. qlai

    qlai

    There’s appears to be no shortage of clients chasing these kind of returns

    https://finance.yahoo.com/news/crypto-kid-had-23-000-120000170.html
     
    #60     Feb 13, 2021