Kardec Trader explains an options-selling strategy that profits when investors overpay for volatility. It's high win-rate but technically difficult and risky for retail traders, requiring careful risk management to protect against sudden market moves.
This is the biggest, most exploitable glitch in the matrix I have seen in my entire trading career. If you're a billionaire, you want to sleep fine. You don't want to be worried. You don't want to be overly exposed. And you prefer to keep paying a little bit, a little bit, a little bit, even if nothing happens, just in case something happens. And then you're protected. But the edge here is, and this is an edge that retail traders can exploit, even though it has its own risks, probably one of our most profitable strategies that we don't share, and we don't share the exact details of how we do it, but it's mostly a short option strategy. So if this guy is the buyer of options, I'm selling it. So he's protecting himself by paying me a premium, the insurance premium. So I'm the insurance broker somehow now. And if you look at historical data, investors will tend to overprice and overestimate volatility. And this is a structural edge. I'm not joking. Do your research on this. It's not easy. It's not an easy edge to exploit. It's not easy to understand the maths that behind options. It's not easy to backtest option short strategies. It's not easy to protect yourself if you're wrong. It's hard as fuck. It's the hardest thing you might do in your trading journey. But at the end of the journey, it's going to be profitable because I can exploit the fear of investors that they will always have because their only worry will always be because of their fear and discretion and the emotion that will always be part of finance because of risk aversion. They will always overestimate volatility. They will always pay a little more with these option premiums that I can cash in. So I sell an option, I cash it. I sell it for cash and so on and so forth. The win rate is ridiculous.
