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So volatility will knock out 70% of your gains from the premiums???
Is that right?
If an equity graph/ data I can calculate what am talking about.
we are not that bad, still looking though...
Don't really have one - One metric i can give you in my Theta number. I try to collect about 30% of whatever my theta number is. So if i have sold a bunch of options worth $1000, I want to keep about $300 of that $1000 at the end of the month.
As for my portfolio, 50% in shares with options sold against, 20% in other options trade like straddles and calendars depending on IV and 30% in cash to defend my positions or ramp it up when IV is higher.
Does that make sense to you ?
most people on forums are mainly beginners looking for holy grails and i really wanted to avoid them.
This was the main aim of the initial post - most people on forums are mainly beginners looking for holy grails and i really wanted to avoid them.
So volatility will knock out 70% of your gains from the premiums???
Is that right?
If an equity graph/ data I can calculate what am talking about.
we are not that bad, still looking though...
It is - but tastytrade is a methodology, and it is a very simple one. Most of these forums are full of guys still looking for that one technical thing that makes them rich... and it just doesnt exist. System this and newsletter that and Product A and Product B. You only have to make 1% a month to beat the market... $10 for every $1000 you have in the game... thats it, $10 lousy dollars. Once you look at the game like that and stop looking for stocks that triple their value in 3 weeks, it is just easier.I found this a bit odd as you kicked off this thread with mentioning of Tasty Trader seeing as they are geared for beginners lol.
sounds easy 1% a month.Not really - I sell $1000 worth of theta. I will take profits at 50% to avoid gamma risk and use my capital a little better, so $500 gone right there. The other 20% is spent on defending trades and losing trades.
As for searching for the oracle... there isnt one mate, i am sorry. There just isnt.
There are heaps of methods that are profitable, and they are ALL risk and return. The more you risk, the higher the chance of return. Trading is a craft, the sooner you just get in there and pick one and then become an expert at that craft - the sooner it becomes easier. Forget paper trading, just trade small, and try and make 1% a month... it is pretty easy once you get the hang of it.
It is - but tastytrade is a methodology, and it is a very simple one. Most of these forums are full of guys still looking for that one technical thing that makes them rich... and it just doesnt exist. System this and newsletter that and Product A and Product B. You only have to make 1% a month to beat the market... $10 for every $1000 you have in the game... thats it, $10 lousy dollars. Once you look at the game like that and stop looking for stocks that triple their value in 3 weeks, it is just easier.
Anyway - off my soapbox now. My dreams have been crushed by Warrior and I am off to see what country i can move to that supports retail investors.
sounds easy 1% a month.
What am I missing..
why doesn't everyone just do that and make 1% a year?Have you got a $10K account, dont answer that here, but just say yes or no in your head.
With a 10K account you can sell premium in single lots on the US market. You will need to be awake early or go to bed @ 2am to get your trades on.
Learn about Calendars and Iron Condors. Look up the research on Tastytrade about both of them.Maybe even a butterfly spread...
Dan Sheridan do a 10K portfolio course for $400 that is well worth while. You just need the course not the mentorship.... Dan Kaufmann has his own gig now and he does the same kind of thing. Both their courses will pay for themselves with the live trades they put on. I made $900 on the last Dan course i did.
But #1 - stop buying stocks. #2, if you do buy stocks - sell 30 delta calls against them. Always sell premium against whatever you own.
1% easy.
why doesn't everyone just do that and make 1% a year?
Why waste time doing anything else?
From Tom this morning with regards to Aussie accounts...
! I’m looking at every possible work-around to on board you guys from Australia. The freaking regulatory agencies are threatening our clearing firm with huge fines and legal action if we accept even unsolicited accounts from Australia. It’s going to be a battle but we will figure out something….That I promise.
Cause it is boring and it it's a grind. You have to love it to do it.
There is no glory... No doubling you money in six weeks... No real buzz
And you can't do it with a 5000 account. Well you can.. But the fees hurt
The S&P500 index averages are a bit higher than 6%.
1928-2016 11.42%
1967-2016 11.45%
2007-2016 8.65%
Nevertheless 12% will be a good return for a cash covered put seller.
Haven't heard of any broker going to battle with ASIC and passing regulations. I am almost convinced they are well bribed to keep competitors out. Hopefully they make it the more competition the better.
Haven't heard of any broker going to battle with ASIC and passing regulations. I am almost convinced they are well bribed to keep competitors out. Hopefully they make it the more competition the better.
OK - so you want to make $75K - i am going to ignore tax as tax on derivatives is different to tax on shares. No idea what that is - but check with your accountant.
1. You cant do it on on the ASX - the spreads are too wide, FEB BHP options are always 12-15 cent spread and that just kills your profits. If you want to trade the ASX you have do be more directional. The US markets are 1 cents wide and much less slippage. Lots of liquidity.
You can do the maths on what you need to have to make $75K, my guess is a little over $800K will get you $75K when accounting for whats money is invested. As you get better - it will be a lot less.
But it all comes down to risk - if you want to make more cash - you add more theta, but you also take that risk on. The other part of options that is worth researching is "Notional value" and understand what the option products are you are trading and what they are really worth for each contract.
If you have the capital - there is nothing stopping you selling or buying futures contracts and selling option contracts against it. Just match up the value correctly. this will lower your fees dramatically. Also you have an option of portfolio margin if you really want to leverage yourself up.
As i said before - Risk vs Return. i can give you a system that is proven 98% correct all day long - but you wont make much money.
I am now officially done on the hand holding - if you are truly interested - watch the WDIS series on TastyTrade and that will give you a much better grounding that what i am typing up here.
All the best.
Anyway - off my soapbox now. My dreams have been crushed by Warrior and I am off to see what country i can move to that supports retail investors.
With a 10K account you can sell premium in single lots on the US market. You will need to be awake early or go to bed @ 2am to get your trades on.
1% easy.
800k = 75k
=9.35% per year...
Passive investing is better than your so called 12% strategy.
less time less stress.
Unless there is less risk.
Actual risk of your 12% strategy,I am still waiting or an answer....
That said, I think it still might be worth using a Demo account, if they can offer one on Tastyworks...the analysis prior to putting on a trade, will be small consolation...
OT,
..... from July 1 2017.
OT,
.... I am up 22.7% for the Financial year. I was bit higher than that before December but that is how the cookie crumbles. Slippage and fees are around 4-7% presently and if i can figure a way to get a Tastyworks account - the fee reduction amount will increase my returns another few percent.
They are not doing one... or the last i heard was that it is only the very bottom of the list. Tom personally hates paper trading.
I have noticed the analyse page is also getting the boot... but i think the backlash will be too high for that to last. I reckon they will mod the "curve" to be the analyse page... or something close to it.
OT,
I am not here to sell you anything - i don't need to prove anything to you. if you wish to learn the method - head to the website and start from there.
The 75K from 800K was an example that all you had to make was 9.35% a year to hit your 75K. Thought it is a nice easy start for a newbie.
Let me give you my performance as of today from July 1 2017. I started with an amount that is a six figure amount. I have 50% in stocks with covered calls and covered puts against them. I have 50% as a trading account for various option strategies and I usually have about 30% in cash which i use up when volatility is high. I trade from about 6am in the morning till 8am in Summer and from 11:30pm to about 12:30am through winter. Not sure which season i prefer to be honest. but about 2 hours a day, maybe a bit more with research.
As of right now looking at my IB portfolio. I am up 22.7% for the Financial year. I was bit higher than that before December but that is how the cookie crumbles. Slippage and fees are around 4-7% presently and if i can figure a way to get a Tastyworks account - the fee reduction amount will increase my returns another few percent.
If you think that the above is agreeable with your trading plan and lifestyle - you know where to go. If you think i am a Charleton selling snake oil and a newsletter, then please continue your search for the grail elsewhere, may i suggest trading the London breakout strategy on the cable if you want some higher returns with smaller capital
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