The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again at optionalpha.com and welcome back to the daily call. Today, we are going to be answering the question, “Is 5% per month trading options even possible?” Once and for all, I think that the answer to this question is unequivocally, “No. It is not possible to do that on a consistent basis.” I’m actually floored that there are still sites out there… I won’t even name the names, but it's probably some part of the title of this podcast that promote and suggest that 5% returns per month on a whole portfolio basis is consistently possible. If you really think about this rationally, you would be looking at 60% annualized returns every single year and that would put you in not only the top category for every single hedge fund, every single mutual fund, but very quickly, you would own the entire world. You would have at that point, compounded growth at 60% per year which you would own the entire world of investable assets. Therefore, it is not possible to do 5% per month trading op