[chrisatumd]

I just want to jump in and comment that 30x gains in a year are not really that crazy with out of the money close to expiration options. I've had 2 different years in the past with better than 30x gains (and years where my options account went to 0).

If you had bought out of the money puts with a near term expiration for an index like SPY and it dropped 10%, you could be talking 80-1000 times return depending on how far out of the money and how close to expiration.

Disclaimer: I do not recommend out of the money options trading for anything other than pure gambling on money you couldn't care less about losing.

[qwrusz]

Ok Hacker News, I think I am done for the day after this.

Just to be clear, we are talking about a 30x return in someone's entire net worth, in 12 months, from trading.

I didn't say you couldn't construct a perfect hypothetical trade that in hindsight would have earned someone a huge 30x or 100x return or whatever. Not sure how that's even relevant though (unless maybe you trade from home and buy those expensive mega-ultimate-dragon options trading online skype courses and still think such trades are even worth talking about).

I didn't even say a 30x return of his net worth was impossible, I said it's "hard to believe" and "very high'.

But apparently a 30x return "is easy" and this guy has done it twice...

OK. Well it's been fun. HAGW everyone

P.S. I appreciate chrisatumd's disclaimer, nice to see, and a good reminder that investing and trading is gambling and you can lose it all, whether you're an amateur or pro.

[caminante]

Man, I lost it at "A 30x return is easy - rare, but easy."

Re: story, I've casually followed his story. I'm also very dubious of the allegations against him and claims about his performance.

[MR4D]

I agree with your second point. As to my wording on your first point, I should explain a bit more....

"Easy" means that it's not technically hard to do. For instance, anyone who's lucky enough can win 30 times their money in roulette. It's "easy", but rare - only 2-3% of people do it.

For contrast, "hard" to me would be something like trading gamma-delta option spreads.

Technically, just about any investor do the former (although they'd have to be lucky), while few can do the latter.

Final point - I consider being lucky consistently is damn near impossible (although statistically, I guess it happens to a few of the 8 billion people out there).

[chrisatumd]

Not trying to upset you, just trying to help you see that the story is not crazy. I'm not sure if you've tried trading futures or options before.

I've never traded futures, but I've seen with the amount of leverage that options provide makes the story quite believable (easy was probably not what the prior commenter meant).

[hermitdev]

It's possible, but almost inevitably, the "strategy" employed backfires, and the trader loses everything. One that comes to mind is Brian Hunter[1], formerly of the now defunct Amaranth Advisors hedge fund. Hunter was viewed as a sort of wunderkind, but he had a natural gas position (I've heard the initial position was between $1B and $2B, but I don't know specifics) go south, and rather than sell off and accept the losses, he doubled down and sank the firm. Margin calls ensued (of up to $6B) that could not be met and assets ended up being sold off for pennies on the dollar. (I previously worked for a firm that bought a large chunk of Amaranth's assets).

[1] https://en.wikipedia.org/wiki/Brian_Hunter_(trader)

[qwrusz]

Ya man I been in the industry a long time I remember Brian Hunter from even before Amaranth. Always interesting reading when his name pops up. Clearly, a brilliant trader on a different level than most guys, but ya that's not always enough on it's own. He should have gotten that DB bonus though, that story was fucked up.

[PhantomGremlin]

I didn't even say a 30x return of his net worth was impossible, I said it's "hard to believe" and "very high'.

It's simple if you have the talent.

E.g. here's a person who deposited $1000 in cash into a trading account and wound up with $100,000 after just 10 months of trading. That's a 100x return.[1]

Think of how rich that person could have been had she decided to continue her trading!

/s

[1] https://en.wikipedia.org/wiki/Hillary_Clinton_cattle_futures...

[rrrrsss99]

Were you buying these options throughout they year, or just near earnings?