This weekend I watched an interesting webinar on archive here at nexusfi.com (formerly BMT) called something like Beginning Option Trading by Carly Garner, head of Decarly Trading. In her approach she advocates day-trading selling naked options on commodities.

Because these types of trades are unlimited risk and limited reward, many warn against this strategy in this forum. I believe the more vivid analogy used was "picking up pennies in front of a steamroller."

Trouble is, I just started playing around with this approach in my paper trading account today and found myself up $300 in little more than an hour and a half. So in this case, it was stocks, not commodities but Carly advocates this strategy regardless of the underlying. Any thoughts on this?

Edit: I just noticed this thread (plus its a sticky!):

Selling Options on Futures? I have been selling options on futures for years. But it is rare to find others doing it. I was wondering if there are others here doing it. I have been doing it for 5 years. Learned it from James Cordier's book. I have sold energy, grain, …

which covers most of what this thread might have covered. I am interested in the question: After watching this webinar did it change your attitude for this type of trade?

Strato 

This weekend I watched an interesting webinar on archive here at nexusfi.com (formerly BMT) called something like Beginning Option Trading by Carly Garner, head of Decarly Trading. In her approach she advocates day-trading selling naked options on commodities. Because these types of trades are unlimited risk and limited reward, many warn against this strategy in this forum. I believe the more vivid analogy used was "picking up pennies in front of a steamroller." Trouble is, I just started playing around with this approach in my paper trading account today and found myself up $300 in little more than an hour and a half. So in this case, it was stocks, not commodities but Carly advocates this strategy regardless of the underlying. Any thoughts on this?

Existing threads for these webinars:

Webinar: Carley Garner on Trading Options 101 - Basics Hi guys, It is my pleasure to announce that Carley Garner will be joining us on Wednesday, October 10th @ 4:30 PM Eastern US to do a webinar presentation on Trading Options. I've asked Carley to start us off with a very basic outline of options …

Webinar: Options Trading 201 - Spreads and strategies (Carley Garner) Hi guys, It is my pleasure to welcome back Carley Garner for another webinar on Trading Options, Monday, February 25th @ 4:30PM ET. You can find her last webinar here: Carley will be discussing more advanced techniques in this webinar, including spreads …

Also Carley has an AMA thread:

DeCarley Trading's Carley Garner (Senior Strategist/Broker) - Ask Me Anything (AMA) redirect

Mike

Strato 

Trouble is, I just started playing around with this approach in my paper trading account today and found myself up $300 in little more than an hour and a half.

I'm sure you realize you could have lost $300 or more in the same time. Great upside potential in options, but your focus should be on the downside - how much can you lose, and how quickly?

If you take care of the downside, the upside should take care of itself (assuming you have a good strategy).

Tough advice to follow, though. After 20 years, I still find myself looking more at the upside than I should. It is a constant struggle for me, and I'm guessing for most others too.

Day trading options can be an uphill battle because commissions tend to be higher and the spread will eat at any profits. I used to day trade spy options a few years ago but looking back I would have been better off just trading the spy outright or trading the ES. That was just buying calls and puts I have not tried selling options in that short of time frame.

Check out this book. All of his books are great treatises on understanding the nature of volatility in options pricing.

Mike, he might be a good webinar speaker if you can nab him.

shodson 

Check out this book. All of his books are great treatises on understanding the nature of volatility in options pricing. Mike, he might be a good webinar speaker if you can nab him.

Post it here please:

Upcoming Webinars and Training/Education Elite members, The NexusFi (formerly BMT) team is planning on hosting regularly recurring Webinars for Elite members of NexusFi (formerly BMT). It will be full audio and video feed (chart+presentation sharing), plus recorded in high quality format for …

Mike

Strato 

This weekend I watched an interesting webinar on archive here at nexusfi.com (formerly BMT) called something like Beginning Option Trading by Carly Garner, head of Decarly Trading. In her approach she advocates day-trading selling naked options on commodities. Because these types of trades are unlimited risk and limited reward, many warn against this strategy in this forum. I believe the more vivid analogy used was "picking up pennies in front of a steamroller." Trouble is, I just started playing around with this approach in my paper trading account today and found myself up $300 in little more than an hour and a half. So in this case, it was stocks, not commodities but Carly advocates this strategy regardless of the underlying. Any thoughts on this? Edit: I just noticed this thread (plus its a sticky!): Selling Options on Futures? I have been selling options on futures for years. But it is rare to find others doing it. I was wondering if there are others here doing it. I have been doing it for 5 years. Learned it from James Cordier's book. I have sold energy, grain, … which covers most of what this thread might have covered. I am interested in the question: After watching this webinar did it change your attitude for this type of trade?

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This is just my opinion. Selling naked options may seem attractive, and work great for a period of time.
But the day will come when the Dow Jones will drop 300 points and and the profits you have made for years
will be lost.