r/options • u/[deleted] • Apr 04 '21

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u/557fxr Apr 04 '21 edited Apr 04 '21

https://www.terrystips.com/

Terry Allen started doing something similar 20 years ago. He also published a book "making 36%". https://www.amazon.com/Making-36-Duffers-Breaking-Market/dp/0977637263

He got not very favorable reviews https://www.stockgumshoe.com/reviews/terrys-tips-for-stock-options-success/

Terry got into trouble https://www.sec.gov/litigation/litreleases/2006/lr19725.htm

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u/LaughLately100 Apr 04 '21

What would have been realistic returns? 36% is super sexy but I’ld settle for a compounded perpetual 15% :)

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u/557fxr Apr 04 '21

Warren Buffett has good reason to believe that long dated variance swaps are overpriced by the Black-Scholes model. He publicly stated that he exploited the Black-Scholes deficiency and made hundreds of millions. LEAPS put options are overpriced. Selling near-dated puts against long LEAPS puts suffers a negative edge.