There is a very good reason why it is very difficult (impossible?) to be a long term winner in the markets through the aggressive use of naked calls/puts and margin. Margin offers the market participant the ability to deploy more capital than they have available and offers the allure of larger percentage profits. Naked options offer a similar allure to the market participant by allowing them the potential for large (massive) percentage movements on their invested capital in short time periods. Recently, many traders have been successfully employing both tools in order to "juice" their gains during the recent bull run in the equity markets.
By most accounts these aggressive traders have done very well recently due to the strong uptrend and minimal volatility. However, if it were so easy to make 50%-100% profits in just a few weeks from speculating in equity markets then we would all be rich.
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Leila Arcieri Kate Mara Izabella Scorupco Carla Campbell Penélope Cruz
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