A tale of two cities and the two different worlds you and I live. Hard for a small time retail like me to imagine what you experienced back then.
Not sure if you were replying to me,but is this the Jacobson you are referring to? Dont see the option trader connection. Is his approach Buffet esque?
Ya but you need capital to buy 100 contracts or more to be able to make bank on calls... essentially if you take on 5% risk then your 'bank" will be limited to less than a CSP...as I pointed out in the example.
Sorry I can't answer anything too specific. Basically the concept is if you have a stock or an option that is already ITM, you can collar it (protect the profit) with selling a higher call to pay for buying a put to protect the downside. Of course what you pay is the limited up side, just like a covered call or a spread.
I am sorry @SimpleMeLike it is not that simple. When I day trade, it is like you said, just click and make money. Option is a slightly different animal. I have a math model I use to calculate the option price, compare it to the price displayed, study MM's greeks, look at the underlying's fundamentals, add my view of the drift vs volatility vs time.... then place a trade or pass. It is hard work, wish I can "just make money".
https://www.wsj.com/articles/SB838251655605936000 It's an interesting story if you spend the time to search it out. He was the first button on the phone turrets of almost every desk, but it was a while ago. Many of the OBOs had his picture taped up on their posts.
While Harvard won't say what stocks Mr. Jacobson bought or sold or how he picked them, Mr. Light describes him as "a very shrewd, disciplined quantitative thinker who does relative-value trades in a very interesting kind of way." A person close to Harvard Management says Mr. Jacobson basically uses options, futures and other derivatives to exploit brief discrepancies in stock prices. Harvard disclosed in its annual report that such a strategy -- it didn't say Mr. Jacobson was the only manager using it -- earned the school a 38.3% return last year.
The most interesting part of the story was his compensation deal. In his last year at the endowment he earned about $15 million, but that created a political problem. So they had to let him leave, but compensated him by funding his HF to the tune of $500 million. By then multiple list and PfOF changed the landscape enough that his strategy lost about half its benefits. They still paid him a little over $10 million.