TastyTrade Method

Discussion in 'Options' started by Chris Paciello, Nov 25, 2016.

  1. sle

    sle

    Some of the facts in this presentation are a bit twisted, since it's essentially a sales pitch for the VRP indices for Nomura QIS. Just FYI.

    Short risk premium strategies work. Unfortunately, the drawdowns in short risk premium strategies tend to correlate with other unfortunate events in traders lives. For example, if you lose money and get fired, it would be usually in the worst possible time :/
     
    Last edited: May 14, 2017
    #101     May 14, 2017
  2. srinir

    srinir

    Very much agree. That is why i mentioned, leverage is the key. Cash secured put of the index or at the most 1.4 to 1.5 leverage (one of the journal study, I have seen) when investor is in early time of his/her investing life is optimal. This is much more of investing strategy, than a trading strategy. Antti Ilmanen says in his book, Covered Put strategy comes with the best performance statistics and worst risk statistics.

    As you mentioned, Short vol has very high downside correlation with other trading strategies like carry. Also Sharpe Ratio of vol selling is less in other asset classes (commodities, currency) compared to short equity index vol.
     
    #102     May 14, 2017
  3. Maverick74

    Maverick74

    Buy and hold works too...
     
    #103     May 14, 2017
  4. sle

    sle

    True :) it's too boring - short vol adds some spice to your life
     
    #104     May 14, 2017
  5. Macca1

    Macca1

    If you want spice in your life, then I suggest eating more chili.
     
    #105     May 15, 2017
  6. Stymie

    Stymie

     
    #106     Jun 7, 2017
    DTB2 likes this.