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Would you trade a position that had the following characteristics at expiry in 2 weeks: 1. Unchanged +$36 2. -10% from current price -$97 (happens to be max loss on trade) 3. +10% from current price +$213 Seems a market can only go in 1 of 3 ways. Stay the same (we make 1/3 of at capital risk)...

Lets say stock X is trading at $206.50 If you buy 100 shares and buy 2 ATM puts you have a synthetic straddle. However, what if instead of buying 2 ATM you bought 5 .20 delta OTM puts? In this strategy you are also delta neutral. This wouldn't be considered a straddle though. What would this...

I have noticed a discrepancy that I am unsure how to explain. I believe it may be telling me something, but I am unsure what exactly. Look at the following set of quotes: BBRY Nov 28 Quotes: 10.5 Call price: .17 Delta: .387 IV: 49% 10.0 Call price: .42 Delta: .67 IV: 49% Lets assume BBRY...

What is the cumulative return vs the S&P since starting this thread?

Is there a site where you can download/scrap news releases going back several years for a particular stock? Is there a service you can subscribe to for this information? I would need at least 5 years of releases for all S&P 500 stocks.

What do you base your decision to be long/short and leverage/not leveraged on? Is it TA, fundamental, or gut feeling? Did you backtest this method prior to posting here?

In my CAT position the 85 calls I just sold have about .40 in time premium, but they are in the money. When the time premium runs out, if they are exercised, will my 87.5 calls be used to satisfy that? How does that work? This is in a IRA account. What would happen to the premium remaining in my...

Made another adjustment to CAT position: Buy 1 CAT Apr5 87.5 call for .14 Sell 1 CAT Apr5 85 calls for 1.06

I view the position as a sort of mix between a covered call and an outright call. Basically, the short side provides just enough premium to make the position gain slightly from standing still or going down slightly. So with an outright call I would be in a "hurry" for the move to start. With...

I adjusted my CAT position: Sell 2 CAT Apr20 90 calls for .29 each Buy 2 CAT May17 87.5 calls for 2.03 each

The purpose of this journal will be to track my Diagonal Ratio Backspread trades. While I have been trading for nearly 10 years, I have done very little option trading until recently. Open Positions from March 26: Sell 1 CAT Mar28 87.5 call for -.43 Buy 2 CAT Apr20 90 calls for .54 each...

I did 2 more positions like this today: Sold FB Mar28 26 call for .17 Bought 2 FB Apr12 26.5 calls for .34 each Sold BBRY Mar28 15 call for .69 Bought 2 BBRY Apr26 15.5 calls for 1.15 each With 3 positions like this, gives me a chance to see how it works out in various conditions...

This does appear to be a diagonal backspread. However, most of the examples I find seem to sell an ITM option. To me it appears its much better to sell a slightly out of the money option. By doing so,it appears you can remove the risk of the stock just "sitting there". In fact it turns this into...

Is there a name for this type of strategy? Are there alternatives with similar profiles?

CAT

I have sold 1 Mar28 87.5 call for .43 I have bought 2 Apr20 90 calls for .54 each The position was entered for a debit of $.65 Stock currently at $87.11 The way I look at this position is come Friday, if I am between 86.33 and 89, I am positive If at 87.50, I make $40 or so...

After 1440 trades, I am up about 500 pips.Its been a roller coaster of up and downs. The good: - Survived slippage and commission over the course of half a year and almost 1500 trades. That is challenging - I am profitable, albeit only about 15% at my current leverage - The 10 minute bar...

Much smoother, but I have never looked at a metric showing all 10 strategies combined. Its always been individual strategies. However, I would expect further smoothing from combining. I believe part of my problem is several of the strategies I am trading are fairly weak. I still consider this...

No, still moving along. Equity has been nearly flat this month. After a total of 1170 trades, here is my latest pip chart.

I assume you built a neural network (or similar) system that tries to predict tomorrow's moving ave slope. Its easy to get a relatively high % forecast accuracy. In a simple moving average, all 10 inputs carry the same weight. Your model already knows 9 of the inputs and it also knows the 1...