What was your most successful Short options trade? Do you still remember it, how profitable, and why you made the particular trade?
When you mean short do you mean naked? My most profitable trades were during the sep/oct 08 falls - I was long vol through some calendars and diagonals on XJO oppies - my account grew by over 20% during that phase My best trade though was last month when I was doing delta neutral spreads on BHP - I managed to walk away breakeven for the month through good MM and trade adjustments (Have a look at a BHP chart - I wasnt happy when they did a JV with RIO and the stock jumped 10%)
I donât understand the questionâ¦If my short strangle expire worthless , how could any other trade top it ?
Best day and month ever, September 15th of '08 when Lehman went under. Unfortunately, I don't qualify for the topic since I was short its derivative equities.
short near money calls/puts in the afternoon of expiration day. Sometimes within last 30 minutes. Gotta to watch and be ready to buy back - take loss immediately. The idea is your short opts expired worthless. One gotcha, if the company whose opt you are shorting has earning or big news next monday pre-market, your opt may get exercised even if out-of-money if you leave them on the table over the weekend. Happened to me. I shorted BofA call opts, it finished 0.01 of out money. Think I got it made ? Nooo, turns out next monday pre-mkt BofA had big earning and it was pre-mkt. I got ding big time! Out side of that exception I have been profitable 8 out of 10 expirations.