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I don't think I'd consider it a true risk parity portfolio, but I'm the main overseer for an account my partners and I opened earlier in 2018. PM account at IB; did basic modeling with historic drawdowns and volatility to craft something we're comfortable levering up and still being able to...

dest, this is an interesting journal, thanks for running it. Found myself wondering how defined your son's trading strategy is. Has he developed a general sense of market behavior which he uses to intuit broad hypothesis and then finds a structure to express them while staying within risk...

Not sure where you’re getting the idea that stocks are better value relative to bonds if earnings yield is greater than bond yields.. the difference you’re seeing is the risk premium embedded in stocks. If yields are equal that’s a sign of macro-level price dislocation.. getting an equal return...

I have a semi-related question about covered calls; decided to post here instead of making a new thread. Basically I'm trying to conceptually understand why a slight premium exists for systematic index buy-writing (and put selling I suppose). I.e. the BXY shows better risk adjusted returns...

Hey @Maverick74 , you advised me a while back that diversification is the only free lunch in finance. I’ve heard you say a few times that commodities tend to ramp up as we get later into credit cycles as we are now. How would you recommend investors to get exposure to that area? I’ve heard...

This is quite an interesting discussion. I read the first half of this thread a while back and now just caught the last two pages. I was initially taken aback somewhat by the direct questioning of inheritance norms; they're taken for granted so easily I haven't thought about the justification...

:) I don't mind working for pay, but having other responsibilities as well as not knowing how best to apply aptitude toward this problem are some limiting factors at the moment. I have thought a few times about trying to patch together a reasonably diversified portfolio and lever it up...

As long as we're getting opinions from some of the very experienced here.. I have a question. After reading about options and getting through the initial red herrings, like positive expectancy coming from premium selling, etc, it basically seems like one either needs a way to model direction...

Is the drop in premium you talk about mostly due to the low-vol environment? I know the value of options increases with IV, but it's been difficult to understand if option writers are getting compensated more for the service itself of providing them during higher IV, or if they are simply...

@tommcginnis , thanks! Just want to make sure I'm on the right track. At the moment I'm trying to conceive of a way to understand how much of the time value premium is collected by the option writer purely for the service of holding risk and offering convexity... vs. how much is a simply a...

Sorry to drag this earlier replay back from a few days ago, but I'm just learning about options and this post stood out to me. Options provide additional value besides exposure to underlying... i.e. ATM options have no intrinsic value; but they still have value because of the other things they...

Yeah, agreed leverage doesn't make any strategy better per se, just boosts the magnitude of returns in both directions. Also noted about interest costs being priced into options. I figured when we buy options we're paying for a number of different things; not at the point of strategy design...

Thanks for the material guys, it was informative to learn gamma is a second order Greek tied to delta, still have more to learn but I think maybe the Greeks were over complicating my questions.. So basically from what you're saying Jack, the leverage factor mostly prevails for the returns given...

Hey guys, I’ve been looking at basic options tables and reading about them, and I wanted to better understand the theory of how the market prices the options and what benefits are being traded. Taking for example basic SPY calls; I was looking at June 2019 expirations, and if you buy an option...

Conclusion: Overall this was a pretty good exercise. I was able to get a decent entry, which was unfortunately stopped out, but it has given me a number of things to focus on. Primarily, I am going to start looking into playing both sides even when I am looking for a particular trade in the...

That's a good idea; I was just thinking to myself that I could study the points where I felt my shorts were invalidated and consider long opportunities there. It would definitely have been a profitable strategy these past few days; the more difficult part for me is finding how to recognize...

Recap: Another tough morning trying to fade such a strong-uptrend. I tried three or four times to catch a down-ward turn with a small stop, but wasn't having much success. The shorts really didn't take off at all, so I didn't get the chance to move up stops and reduce losses. Finally got a...

Recap: Got an entry in a little after the opening rush. I'm more comfortable playing things cautious since we're still pretty clearly in an intermediate term up-trend. So, after I failed to get a particular confirmation signals following my short, I kept it on a pretty short leash and ended...

Update for Today: Attempted to fade small consolidation ranges after up-spikes. First @ 2091.50 at 12:10 and second @ 2093.25 at 12:55. Both trades had two point stops that were hit during continuation of the trend. After the day's rally seemed to run it's course, I shorted a third time @...

Tell that to the multitude of people that frequent casinos for leisure. I think it's a bit ego-centric for you to deem something as not fun just because you don't think it is. I think I would know better than you what is fun for myself. I appreciate your concern for helping me develop as a...