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  1. O

    Fuel Hedging using CL Call Options

    Thanks Bone. I think the above statement is easy to say but very difficult to resolve the issue regarding how to do proper hedging for fuel, as whether it is technically feasible to find a viable solution, I just wonder. Intriguing indeed...
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    Fuel Hedging using CL Call Options

    Q&A When hedging backfires http://www.bunkerworld.com/forum/Hedging/thread_51/When-hedging-backfires Q " Over the past few years, many shipowners have enjoyed the benefits of hedging their bunker requirements as oil prices seemed to go only up and up, but since mid-July this year, oil...
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    Fuel Hedging using CL Call Options

    Fuel hedging no guarantee for airlines March 21, 2011|By Brett Snyder, Special to CNN http://articles.cnn.com/2011-03-21/travel/airlines.fuel.hedging_1_oil-prices-increases-airlines-lower-price/2?_s=PM:TRAVEL " Southwest got lucky when it locked in its oil at a low price, and it had a...
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    Fuel Hedging using CL Call Options

    The difficulty with fuel hedging Dec 28th 2008, 16:17 by The Economist | WASHINGTON DC http://www.economist.com/blogs/gulliver/2008/12/the_difficulty_with_fuel_hedging "As The Economist hinted in October, Southwest's third quarter earnings weren't pretty: the company reported its first...
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    Equity Hedging - A Simple Overlay System

    Finally, due to this system is a hedging strategy, I think it would be much better and logical to use only put options of variously sized position in order to attain the desired functional performence. It would be reasonable that the strategy now can hedge the market risk better during down...
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    Equity Hedging - A Simple Overlay System

    Closed the Long Call below: 2/27/12 9:43 BUY 1 SPY1217C136 SPY Mar12 136 call (exp 03/17/2012) 1.66 3/5 10:01 1.86 Low $18 Keep the Long Put for another week.
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    Equity Hedging - A Simple Overlay System

    Reduced from Long 2 to Long 1 Put; and Opened Long 1 Call below: Opened ET B/S # Symbol Price Closed Current Price P/L 2/27/12 9:43 BUY 1 SPY1217C136 SPY Mar12 136 call 1.66 0 1.66 ($1) 2/13/12 10:28 BUY 2 SPY1217O135 SPY Mar12 135 put 2.91 1 1.74 ($239)
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    Equity Hedging - A Simple Overlay System

    Hold for this week.
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    Equity Hedging - A Simple Overlay System

    Thanks Nitro. According to my system, this current trade should have been entered with 134 strike puts at a cheaper preminum, instead of the 135 strike puts for the already opened position right now.
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    Equity Hedging - A Simple Overlay System

    New position: BTO 2 SPY1217O135 SPY Mar12 135 put at market Filled: 2.91 at 2/13/12 10:28 ET
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    Equity Hedging - A Simple Overlay System

    Closed the remaining 1x @$0.09.
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    Quick Trade - Options Buying Methodology

    This Quick Trade system is now becoming a part of the overall Equity Hedging strategy. The Equity Hedging main system alone (before adding the Quick Trade sub-system) due to its hedging objective/functionality is never expected to make any profits. Adding/integrating the Quick Trade...
  13. O

    Your Edge

    I agree. 21. All of the above plus many more, and beyond. :D
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    Equity Hedging - A Simple Overlay System

    9/26/2011 @ 9:13AM |817 views Using SPY Put Options For The Backdoor VIX Trade http://www.forbes.com/sites/greatspeculations/2011/09/26/using-spy-put-options-for-the-backdoor-vix-trade/ " SPX with Shares Sold Short Hedging with SPY Options: An alternative to hedging with VIX options...
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    Equity Hedging - A Simple Overlay System

    Other different approaches/instruments: " http://www.moneyshow.com/trading/article/42/VideoTransTr-24426/2-Proven-Ways-to-Hedge-with-Options/ Buying index options or VIX options are cost-effective methods for insuring your portfolio against downside risk, says Larry McMillan, who shares...
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    Quick Trade - Options Buying Methodology

    Model Account Status Started $100,000 Buy Power $100,159 Cash $100,159 Equity $0 Cumulative $ $159 Total System Equity $100,159 Margined $0 Open P/L $0 All Statistics Based on Hypothetical Results Trades 3 # Profitable 2 (66.7%) Avg trade duration 8.4 days Annual return...
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    Equity Hedging - A Simple Overlay System

    http://www.elitetrader.com/vb/showthread.php?s=&postid=3444575#post3444575 From now on this Equity Hedging system will include a Qucik Trade sub-system in order to improve its overall performance. http://www.elitetrader.com/vb/showthread.php?s=&threadid=79684&highlight=*correlat*
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    Quick Trade - Options Buying Methodology

    It appears combining these two systems could most likely provide a set of better performance characteristics. Hence a logical development is simply to focus on the Equity Hedging overlay strategy being the main system, while integrating/maintaining the Quick Trade strategy as a sub-system.
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    What are the largest fortunes ever made by INDEPENDENT traders?

    Very interesting story, indeed!
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    Quick Trade - Options Buying Methodology

    Agree. In trading/owning options, minimising the total number of trades focusing on a minimum number of markets is a calculated edge indeed. Also a matter of lifestyle! :)
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