What are some low risk to reward ratio strategies?

Discussion in 'Options' started by rabbitsfoot, Apr 17, 2019.

  1. bln

    bln

    There is no good returns in pure premium selling. The market makers taking the other side is professionals and got their statistics figured out. But you can add 1-2% on top of your returns for decent risk selling deep otm CSP's
     
    #11     Apr 17, 2019
  2. destriero

    destriero

    I took linalg in undergrad.

    There is a premium in underwriting disaster insurance. The MMer uses that premium to buy reinsurance. But yes, there are no free lunches.

    Do it, but understand that probability is not an edge.
     
    #12     Apr 17, 2019
  3. %% And never name an insurance co '' rabbits foot'' LOL-LOL:D:D :D:D
     
    #13     Apr 17, 2019
    birdman, destriero and ironchef like this.
  4. destriero

    destriero

    MLI used to be priced advantageously, but I don't have any morts.
     
    #14     Apr 17, 2019
    murray t turtle likes this.
  5. qlai

    qlai

    How come nobody is suggesting to use indices instead of individual stocks? I don't know enough to suggest it, just throwing it in for discussion.
     
    #15     Apr 17, 2019
    Pkay and rabbitsfoot like this.
  6. ironchef

    ironchef

    Too crowded for me, just a minnow, swimming in sharks infested water.

    I find it better to swim where the only sharks are MMs.
     
    #16     Apr 17, 2019
    kj5159 and murray t turtle like this.
  7. qlai

    qlai

    How is it any different? I assume that anything with sufficient liquidity is red ocean.
     
    #17     Apr 17, 2019
  8. Shit yes. In a non-stationary environment, it’s pure fallacy and can shift drastically from one significant sample group to the next.
     
    #18     Apr 17, 2019
  9. ironchef

    ironchef

    Not on some of those I traded, not an ocean, not even a lake, more like little puddles. You won't find any pros in them trying to take money away from me. :p
     
    #19     Apr 17, 2019
  10. qlai

    qlai

    Meaning there's not enough money in it to be worth their time?
     
    #20     Apr 17, 2019
    drmark27 likes this.