Not having seen a margin call is really not an edge. Being at risk of a call is symptomatic of a losing position (in >99% of cases). You're equating an edge to the ability to take delivery?
There is an Edge in trading options. That edge is understanding how to structure a position that will take advantage of market assumptions and assessment of Volatility. It is not, at first, easy to understand. When you "get it" you will be amazed at what took you so long to grasp it. When you own the edge you will find it easy to structure high probability trades. Will you have winning trades all the time? NO Will you be consistently profitable with the "edge" over time? YES Is it worth it? Absolutely!
If you are presently trading equities, bonds, commodities, pairs trading, swing trading, long term investor, or day trader / scalper how would you define your edge. If you can't write out your edge in 3 sentences or less -- You probably don't have an edge. Without the edge you will not be a consistent winner. You cannot beat the professionals at their own game or cover transaction costs, cost of funds, overcome any losses and stay "in the game". You MUST find an edge or just take your money to Vegas and be at the mercy of the House that does Have an edge. Even there you may be better off if done right as you may bet it all on a 45% proposition and be a lucky winner -- pick up your winnings and leave. If you stay the House will get it all back.
If you sell more naked puts than you account size warrants, that's stupidity. Selling a number commensurate with account sze is being judiciious. It's not an edge. I learned my margin call lesson well in 1987. Having a tendency to roll expiring puts on expiration Friday, everything that I sold on that Friday, I literally owned the following Monday. Gave up a lot of good stocks (before their long upswing) in order to cover. I may occasionally approach 3+ times PDT margin now but now I clearly understand it and manage it carefully.
Ok, here you all are.... to those who say, "there's no advantage in buying options," "retail traders cant trade options successfully," and "never pay for advice." (Granted the original poster used a combination of a service and his own screening) Note the critics in the beginning. I followed every one of his trades, and it was not hard the figure out what he was doing. This is the only way I really trade, though I take "greedy trades sometimes." Read it and weap. Right under your nose the whole time: http://www.elitetrader.com/vb/showthread.php?s=&threadid=141574&perpage=6&pagenumber=1
I think you give him too much credit, most of Ben74's picks were from the service; don't think his screening had much if any 'edge'. I was subscribed there also.
Quote from ibn: After losing half my account, I found 1Option.com. I know this sounds like a lame testimonial but this guy is the real deal. His calls are right on , and I learned how he trades the market. Pete Stolcers is the real deal when it comes to reading the market. As for his options subscription services, he does post actual results on his site, good, bad and ugly, doesn't hide the losers and show the winners like our buddy "Nails On The Money" Lenny
Huh? Shorting index put vol can be a favorable trading strategy but not because you're assigned and then resigned to overwriting. It's because index vol skew overestimates stat vol, and especially so during certain market regimes. Whether you take assignment or buy back your shorts, your p/l looks the same. You might use assignment and the disregard of unrealized losses as a psychological trick, but it's not sound financial thinking. Maybe some odd utility function or some tax-related reason causes you to consider this approach, but you wouldn't want to think of it as an edge.
Obviously you learned nothing. All his picks were initially from the service. I followed them and narrowed them down (as Ben did, too). Shortly thereafter, I realized you dont need the service (probably the same for Ben, thats why he just disappeared from posting). No need to share with anyone.