Featured Member: IV_Trader - Options Trader With Annual Returns of 35%
Hi iv_trader! Would you be able to tell us how you got started in stock investing?
I started trading stocks in a retirement and TFSA Accounts in my early 20's and started trading options after the 2008 pullback, looking for other solutions that would allow for profit in a bear market.
What is your current investing style? What kind of returns are you seeing?
I trade options actively approx 500 contracts per month. I trade neutral beta weighted against SPX. so some positions are bearish , some are bullish, and some are neutral but I keep the overall portfolio balanced. I look to trade primarily based on volatility and time decay under the premise that the Market Makers always have the edge and that expected moves are generally overstated. I use the analogy a lot that buying options to try and predict directional moves is like gambling in the casino, you might win you might not on any particular trade, but the odds are slightly in the house favor so if you trade for long enough you will eventually lose. The opposite is true of the MMM and selling premium, you may take losses and have occasional draw downs, but if you trade lots, the odds are in your favor you will win.
I average a monthly return of anywhere from 10-16% on good months and my worst month last year was -2% My overall return last year was 35%
What brought you to Hashtag Investing and what do you like about it?
You can only absorb so much information actively while maintaining a family, career etc. Hashtag Investing is a great community of like minded people, who share ideas, critiques and strategy together.
What are your opinions and thoughts about the current market?
Ready for a significant pullback, we might not be quite at the top but all fundamentals indicate the market is overbought.