What strategies do you guys use?

"Deep out of the money options tend to stay out of the money, if not deep out of the money. "
— Investorglossary.com

 

lol, I would pay to see that.

 

AND??? What's your point??? My initial margin was 35%. Now it's 25%. Any other rational person would see that as a good thing.

What, you think I'm going to post a screenshot of my actual account?

What about the CL calls? Please explain why the natural gas trade is too retarded? Give details. What's retarded is the Chuck E Cheese comment of yours.

At least I've got a firm. What do you have?

 

I'll PayPal the $1,700 if you can prove that you actually traded each of those positions in your real-money TOS account. My bet is that such stupidity is hard to achieve.

 

I'll add that you provided the screenshot of the $1,725 demo gain YTD. No, I don't consider it rational to take such risks for a 6-month return of 1.725%.

 

Betapeg

I don't mean to be rude, but it seems as though you are simply trying to 'copy' the guys at Liberty but don't have the same degree of knowledge or experience .... on top of which Atticus calls them a bunch of clowns .... and I ain't arguing with Atticus )

I can talk with some degree of experience in respect of Liberty, as I actually have had an account with them for the last 3 years ... in which time my investment is up 250% ..... but that isn't the whole story ... which comes back to your naive assumptions about risk management ...

Based on my experience with Liberty, if you sell FOTM naked options on highly speculative commodities then you can expect

- the options can double/treble in price overnight without any change in the underlying price
- commodity options that were initially 50% OTM when opened can quickly become ATM; particularily if trading limit up on consecutive days
- large draw downs in your equity balance; which if you do not have the stomach for a wild ride, you will probably puke at the wrong moment

Personally, I only invest with Liberty what I can afford to lose 100%, as I regard it as the highest risk element of my portfolio, and I regularily draw down cash to ensure I realise some of the profit along the way.

Best of luck with your new firm ...

Cheers
JP

 

<iframe width="425" height="349" src="http://www.youtube.com/embed/JYfM-frIWlQ" frameborder="0" allowfullscreen></iframe>

 

Figured that Madoff would feel the need to chime in. Don't you have some creative accounting to do?

 

Don't knock it if you haven't tried it. My firm account is absolutely off limits to you. Just know our little circle of investors are very satisfied.

What are you talking about? 6 month return of 1.725%?? Where did you come up with that number? I'm sure you can clearly see $5,000 worth of options expiring within 2 months. Mathematically, that is 5% in about 1-2 months.

Thanks JP. Well, I can only say, the strategy has worked for me, and I like it. I didn't say it's for everyone, nor did I recommend any one do it. I'm here just detailing my strategy and why I like it which is what this thread is about.

 

So you won't cross the street for a risk-free $1,725? The smell of BS is strong with this Padawan.

Your YTD PNL is $1,725......