From one alpha junkie to another
The UK passes a non-binding resolution to exit the EU which will play out over the course of several years. I see the market tank, and the vix spike. I buy some broad market etf’s and sell calls against them for a high premium. Things calm down, and I make a big profit in just a few days on both the etf, and the hedge.
You saw the etf’s break not too long ago, and bought well under NAV. There are always opportunities. Why are you giving up on being an alpha junkie? If you are willing to sit on your hands, and simply watch, opportunities present themselves a couple of times per year. You have an advantage knowing how the monetary system works, how the stock market works, and you have an advantage knowing that future stock market returns look nothing like past stock market returns. Why give up on the easy money?
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