Here is what I don't get about his put selling: Is he using 4 times margin to find stocks with high enough premiums to make the 30% goal? SRPT has one of the highest premiums and I still have to go out 2 weeks to find premiums to be 13% of the stock's price, so how can he make 30% or more weekly? And his account size isn't big enough for portfolio margin yet...
Yeah my bad, he claimed 30% monthly, not weekly. I was just misled by his good results. Keep it up Marsman! Although I still wonder what he does if the stock takes a plunge? I guess that is what diversification is for. On SRPT I sim wrote next weeks puts, got $1100 using up 5.8K buying power. So if expired that is about 20% return in 10 days. So it can be done as long as the stock doesn't take a big drop. Here is the recreation of Marsman's strategy: 1. Choose 5-10 high IV stocks. Divide the buying power among them evenly. 2. Write weekly puts on using OTM strike price where the premium is about 5% of the stock's price. 3. Wait and keep posting obnoxious posts on multiple message boards. 4. Repeat it next week. If assigned you can write covered calls on them. Or sell the stock and write puts again... As my above SRPT example shows, if not assigned one can repeat that 20% return on BP 2-3 times a month. (4 times with weeklys, but smaller return) The system will obviously take a hit here or there, but diversification will protect the overall capital...
He sells multiple deep OTM strangles on high IV illiquid stocks... then he sits and waits for expiry. It will work for a while, but if you look at his IB statements... you will see he's got 2k left to cover a loss on say 5k worth of short options in all illiquid markets... and by illiquid I mean 50ct spreads... So... .if one of the positions go AWOL, he loses more than 2k and needs to buy back immediately... which means lifting multiple offers through the book in illiquid markets... so even intraday he's screwed because he won't be able to buy-back unless paying top price... which is a lot more then you would think. A big gap opening means loss of multiple times the account size. Also, he's totally inexperienced... he thinks he makes 60% while he looks at the cash-balance in stead off the net-liq value... That said, his 30 or 50% is awesome, but basically gambling.... can't keep going like this forever.... as most experienced traders will say...
BTW: marsman on T2W "Hi folks, today I've been banned at ET because I critisized the mod there (named Magna). I think my critique was justified." And apparently he whined about people giving him a bit of a hard time "spamming" his journal... of which I was probably one... but anyone who was on that thread will know that most comments were made to help or address his flaws (of which there are many). He also posted a private message on his journal, which actually might be one I send him... and the mods didn't like that either, because... you know... private... If it was mine, I couldn't really care less... Anyway, too bad in a way... he was annoying and ignorant as hell, but kinda entertaining.
I still can't believe we let this guy go: Marsman on T2W: "our goal is very ambitious and time-criticial. For example to become each USD millionaires within 6 months, and the 2nd milestone is to have each at least $25 million within a year, and 3rd milestone is to become each a billionaire within 1.5 years." I really don't understand the time critical nature of the project, maybe one of them is terminal and wants to enjoy the billions before he goes...
Up 169% after two weeks live. At least according to his T2W posts. Unless he is photo-shopping his statements.... who knows. Maybe he is a "boy genius". Eastern Europe has been known for that. But whatever. He didn't post today... maybe he got his ass handed to him. Or maybe he is signing deals. Again, who knows. He was entertaining though,..... and he held the top spot for most viewed threads for 3 consecutive weeks here. Poor Mars....all revved up with no place to go. Best selling album of all time for years in Europe btw.