DISCLAIMERS#

This page exists because the rest of the site deals with instruments that can wipe out an account, and being clear about what this site is — and above all what it is not — is no formality: it is part of the same intellectual honesty I try to apply to risk.

This is not financial advice#

All content on this site is for educational and informational purposes only. It does not constitute financial advice, investment advice, a personalized recommendation, a solicitation of investment, or an offer to buy or sell any financial instrument. I am not a licensed financial advisor, and I know nothing about your financial situation, your goals or your risk tolerance: nothing you read here can take them into account.

This site is a personal technical journal: I describe strategies I have studied and that I run on my own capital, with my own rules and my own mistakes. Every sentence of the kind “I do”, “I use”, “my choice” should be read for what it is — a chronicle of my decisions, not a suggestion that you do the same. If any passage should sound like an invitation to trade, that is a writing flaw, not an intention.

Selling options carries a high risk of losses#

The strategies described in these pages involve selling options on margin, with leverage. This activity can produce losses greater than the invested capital: a margin account can end up owing money to the broker. Derivatives are not suitable for most investors. This site itself devotes an entire section to documenting the disasters of those who sold volatility badly — and no technique described here, night guard included, eliminates tail risk: at best it reduces it, at a cost.

No promise of returns#

All return figures quoted on this site (alpha, premium capture rate, Information Ratio and the like) come from publicly available third-party track records (first and foremost Big ERN of Early Retirement Now), from academic papers (Israelov, Bates, Constantinides and others), or from my personal experience. They are historical data: past results are neither a guarantee nor an indication of future results. The volatility risk premium can compress, disappear for years, or present the bill in a single night.

Accuracy and liability#

I write with care but without guarantees: the site may contain errors, simplifications and information that ages (parameters, margins, tax rules, product features). Always verify every piece of information against official sources — broker, exchange, product documentation — before making any decision. I decline all liability for decisions made on the basis of the contents of this site. Any trade you decide to make is your own choice, made at your own risk: if you are considering derivative instruments, consult a licensed financial advisor who can examine your specific situation.

No commercial relationships#

I receive no compensation from any broker, issuer or manager mentioned on this site; references to products and services (Interactive Brokers, hardware, software) describe my own operational choices and are neither advertisements nor affiliate links.