good day, i was wondering what are peoples views / experiences / observations of Premium Scalping has been ? thanks pjg
Linking the system helps us all:
No system description, but none is really needed. This guy is selling a TON of WAY out of the money VIX calls. There is a reason he is not TOS (besides what I’ve learned is the much higher price C2 charges for TOS) - he is picking up nickels in front of a steamroller. Any significant VIX event (like Feb 18) and he will be smashed, hard.
Liquidity of these options can also be called into question. I’d be curious how his autotraders do price-wise and quantity-wise when he gets regular subscribers (one or two have tried it looks like).
@DogZebra_Investing - Totally agree. This is one of those systems that looks great until everything blows up and it takes your account with it.
For anyone who has no experience in writing option, you should not jump this strategy. Writing option requires good capital for margin. This developer is using $80k n write 200 - 500 options. With the same amount of capital, you should double check if IB can allow you to have that transaction, the answer is no.
It is not TOS anyway and off course this model wants to impress anyone who has no knowledge in this field.
Please see a couple month ago, Feb 2018, this strategy would be wipe out.
Ask your self, 3 people have already put the same concerns, who will subscribe this strategy
Off topic question, how do you link the system like this (with the chart)?
just paste in the URL address when you are typing.
as others have pointed out… it is gonna require alot of capital to naked short these options… and yeah all is good till it goes bad
I write option prem thru IB and other prime brokers. You need around 180k-200k margin requirement per 100 contract on vix30 call. (As of today at vix at 12)
Any broker require less than that you are going to get margin call when vix is above 14/18/20.
did you even look at the trade details ?
he gets like margin call every other week. I love how he short 50 Vix contracts, got margin called, then shorted 500 more contracts 2 days later.