The account is up 4.38% since inception on February 2, 2020. Not too bad for 12 days! Have a great weekend.
It's a shame there's a couple of tossers on this thread spoiling what may turn out to be a very useful journal for those of us who like to sell options. @Sweet Bobby , as you already know, you don't need to prove yourself to anyone, esp a guy who calls himself Poop Dick (a very appropriate handle if ever there was one), or whatever. He's actually desterio in re-incarnation. Even if he didn't confess it another thread (https://www.elitetrader.com/et/threads/short-strangles-via-tastytrade.340490/page-2#post-5014314), his cryptic, autistic, socially-retarded manner gave it away pretty quick. Pls carry on posting your trades, and outcomes.
This is exactly the kind of pointless comment that's spoilt many a journal here - if you don't like selling options, then stay away from this thread. Simple. Let the rest of us have a meaningful conversation.
Slow holiday market, but I do like /ES because it was open until 1 PM today. The small account is up 8.8% since inception on February 3, 2020. Happy Trading!
As a short premium seller, I have to develop various methods to hedge the portfolio. Here's the risk profile of my current hedges. I never know when the black swan event will happen, so I have to maintain the hedge at all times. The main question is how much expense should I allocate to my hedging? I use skew to help me decide when to enter the various legs of the hedge. Some of my hedges I actually expect them to make money and I put them on when I anticipate market conditions to move in the direction of the hedge. What are some of the ways that you hedge your portfolio?
I'm not sure why the sudden drop in the market. I'm sure someone, somewhere just made a comment that shook things up. I used the opportunity to add to my hedge by selling a few naked puts. I hedged the naked puts with a few long puts in a different expiration. \ Check out the lift power with a market drop and an increase in volatility: