My last post had to do with Karen, the Super Trader, and it seems to be no accident that Sosnoff introduced me to naked OTM short strangles, and then Karen comes along and validates the strategy with her incredible story. (if you haven't watched her videos, you really should.)
If you don't know what a short strangle is, watch out. You'll hear alllll kinds of scary warnings (like NEVER do a naked option, EVER, EVER). You need to open your mind to learning it ALL and THEN make up your own mind. Just remember we are talking about very, very far out of the money options.
One of my Trading Divas last year was a professional futures trader, and she came to our group to learn options. I just assumed (silly me) that she was going to trade equities, like the rest of us. But no, she planned on trading options ON FUTURES. My eyes crossed and then she went north for the summer, but "futures" stuck in my head. Something I knew nothing about. But didn't I have enough on my plate??
So this just set me up for the next step. Fascinating.
Well, it seems that every day brings new information, new depths to options trading. I no sooner learn one system of trading than a whole new view pops up. I met a local trader here in Naples who only trades Oil Futures, naked strangles...and trading with options. He was kind enough to give me some basic information and turned me onto a book called "The Complete Guide to Option Selling" (second edition) by James Cordier & Michael Gross.
That was a revelation. I got a "crash course" on Futures. Stay tuned. I expect to fill these pages with new education. I find it so invigorating to know this education just goes on and on and on.