Dow?
- Thread starter irvinehomeowner
- Start date
NEW -> Contingent Buyer Assistance Program
You have to have money for margin to sell naked options and you use stops/strangles/straddles to protect yourself. I'm not exposing myself to company risk, just market risk. I use technical analysis on both the VIX and S&P to decide what trades I'll make. I lost $26k that one day in August when we had the melt down day because I got stopped out of my positions, but I made that up and then some in Sept. I've been trading VIX options for 5 years and have never had a negative year. The goal is to collect enough premium in the good days that you can absorb the hits that you'll take. It's an aggressive income strategy and not for everyone, but if you are disciplined you can make good gains. Plus, the best part is that 60% of the gains are treated as LONG TERM capital gains because VIX options are cash settled.
You can trade more out-of-the-money VIX calls and not have to babysit your positions. With a lot of those positions you will be just waiting for the options to expire worthless (e.g. $30+ VIX for Nov). They introduced weekly VIX option in Oct so there's more opportunities to make some money on trades. I look at the market a few times a day, many times using my TDAmeritrade trading app. One of my buddies was curious about my trading and now he sells 100-200 call options and makes about $4k-$6k/month without much effort. I do tell him that sooner or later you'll give some of your gains back, you just have to limit those losses.
Ready2Downsize
Well-known member
Watch out for the wash sale rule.
usctrojancpa
Well-known member
PS9, if you want to make some money...I should teach you how to trade VIX options (not for the faint of heart but fun and profitable). Already gained enough for my single-story 3-car garage downpayment with this year's gains. >
usctrojancpa
Well-known member
ps9 said:
You have to have money for margin to sell naked options and you use stops/strangles/straddles to protect yourself. I'm not exposing myself to company risk, just market risk. I use technical analysis on both the VIX and S&P to decide what trades I'll make. I lost $26k that one day in August when we had the melt down day because I got stopped out of my positions, but I made that up and then some in Sept. I've been trading VIX options for 5 years and have never had a negative year. The goal is to collect enough premium in the good days that you can absorb the hits that you'll take. It's an aggressive income strategy and not for everyone, but if you are disciplined you can make good gains. Plus, the best part is that 60% of the gains are treated as LONG TERM capital gains because VIX options are cash settled.
ps99472
New member
Does it require a constant eye/pulse on the market? My day job is not trader friendly 
Got lucky with VRX today, been watching it closely the past week and thought the support was there, luckily the senate probe news broke in the early morning or else I would be down a couple grand today.
Feel bad for them, what they do is not that much different than other big pharma, who doesn't raise prices?
Got lucky with VRX today, been watching it closely the past week and thought the support was there, luckily the senate probe news broke in the early morning or else I would be down a couple grand today.
Feel bad for them, what they do is not that much different than other big pharma, who doesn't raise prices?
usctrojancpa
Well-known member
ps9 said:Does it require a constant eye/pulse on the market? My day job is not trader friendly
Got lucky with VRX today, been watching it closely the past week and thought the support was there, luckily the senate probe news broke in the early morning or else I would be down a couple grand today.
Feel bad for them, what they do is not that much different than other big pharma, who doesn't raise prices?
You can trade more out-of-the-money VIX calls and not have to babysit your positions. With a lot of those positions you will be just waiting for the options to expire worthless (e.g. $30+ VIX for Nov). They introduced weekly VIX option in Oct so there's more opportunities to make some money on trades. I look at the market a few times a day, many times using my TDAmeritrade trading app. One of my buddies was curious about my trading and now he sells 100-200 call options and makes about $4k-$6k/month without much effort. I do tell him that sooner or later you'll give some of your gains back, you just have to limit those losses.
