Smart Money Sells Straddles!

Everything works until it doesnt then it's
LOOK OUT BELOWWWWWWWWWWWW !!!!

 

Is it a coincidence that the tracking period starts in May of '09 when conditions became ideal for selling premium? (see 2nd data list)

A naked straddle strategy would have been smacked in '08 despite the higher IV. In order to have broken even, the average straddle premium received would have needed to be about 9.3 pts. I think not.

SPY monthly gain/loss (option cycle):

01/08 (16.07)
02/08 3.08
03/08 (3.06)
04/08 6.40
05/08 4.18
06/08 (11.08)
07/08 (5.60)
08/08 3.67
09/08 (5.53)
10/08 (30.91)
11/08 (13.69)
12/08 8.67


05/09 1.94
06/09 3.02
07/09 2.09
08/09 8.84
09/09 3.75
10/09 2.17
11/09 0.54
12/09 0.78
01/10 (1.00)
02/10 1.93
03/10 4.83
04/10 3.39
05/10 (10.25)
06/10 2.61
07/10 (5.07)
08/10 0.87
09/10 4.96
10/10 5.21
11/10 2.59
12/10 4.01

 

Chuck Norris makes money selling straddles, no matter what the mkt does.

Obviously, this is a no brainer, 'cause even when Chuck Norris buys straddles, the mkt pays him money.

 

When he heard Chuck Norris was hanging around, vega jumped on the first bus out of town.

 

yeah, and Chuck Norris does not post collateral, he posts collateral damage

 

OK, this went over my head. What does Chuck Norris (the actor?) have to do with trading. Apart from that, IRL, he's a friggin' AH.

 

Chuck Norris Facts

 

This is because Chuck Norris' book is long gamma AND earns theta

 

The Vegabus is coming
And everybody's jumping
New York to San Fransisco
An intercity disco

 

LOL. Sounds like 1/2 the ET posts I read