Search results

Mark, or any other IB customer, can do the same thing right now by trading the diagonals with emini futures options and SPAN margin. Any good futures broker gives you the same capability. For the regular trader, much easier than going with a haircut account. Which is not to suggest you take...

Hi Mark. Glad to see you're still around :) I have a question for you that is also partly related to hedging. I have been doing a number of wide-strike credit diagonals. When the market moves away from the strikes and I close the diagonal for a profit, the long backmonth option is often...

I think its good to evaluate your overall performance. For some traders, the $ per contract metric might be ok. I don't think it works for your style of trading. Lets take the previous example a bit further. You make a 10 contract spread trade for a 1 point net profit after closing the...

I am curious about this exit rule for the butterfly strat they tested: "3. If the spread is still open on the Friday that is one week before options expiration, exit at the close." The P/L curve of the fly changes dramatically during the last week of the trade. They have a graph of the...

It would help to know exactly how you came up with your $10 per contract number, which can be very deceiving. For instance, you do a single spread trade with 10 contracts for a $1 credit. $1000 profit. Are you calling this a profit of $100 per contract? But its a spread, so you really...

Remember, ER2 is strictly electronic and traded on globex. Globex has very limited support for combo orders. In general, you will need to leg into any spread positions with ES, ER2, NQ, etc. Also, ER2 options are not very actively traded compared to ES. You can certainly place your order...

Here is Mav's quote: " I've seen short gamma traders wipe out on 5% moves. They happen on a daily basis." The clear implication is that short gamma traders (including you) are on the fast track to a wipeout. So I think an audited track record of a cta who is naked short (the riskiest of...

You know a thoughtful reply is coming when it is prefaced with "Dude"... Besides, it looks like you have your hands full already :)

Yeah, like all premium sellers, I am pretty sure he sells crack out of his garage. :D You also said if I could demonstrate double digit returns and a less than 5% drawdown, you would issue an apology for your typically insulting comments. I did better than that, showing audited numbers going...

The LJM guy is the same one profiled in one of the free industry mags a few months ago. Interesting read, and a good example of how 1 stubborn trade can really hurt. Here is another interesting one: http://www.zenith-resources.com/performance_iop.php This cta only sells naked premium...

I'm done for tonight. I'm a fan of civil discourse. You are not. I'll move on and let you crap on someone else's shoes.

You are correct. We have been talking r/r and w/l%, but we have totally ignored position sizing. If 2 or 3 consecutive losses puts me out of the game, then I was overleveraged and I will take my place among the pantheon of losers. However, that is a mistake of money management, not strategy...

Oh Jesus! Now short gamma traders are drug dealers! :confused: Maverick's been banging his shoe so hard it must have bounced back and hit him in the head :D I hear Max Ansbacher is a sheep molester... No a bad, ridiculously leveraged short gamma trader can be wiped out by a 1/2 sigma...

LOL! You're the one that brought up the analogy of putting a bullet in the brain via Russian Roulette :) There is a couple that lives down the street from us that hardly ever leaves the house. Every day, there is some kind of vendor there. Mobile vet. Schwann's food delivery, mobile car...

I don't think you can separate risk/reward and probability of success/failure. Since we're using real-world analogies, how about this one: Drive to the store and buy a gallon of milk. Risk: Death, dismemberment, paralysis Reward: a gallon of milk Why would anyone ever leave their...

Not a Treo. Its an HP hw6515 running Windows Mobile 2003 SE.

I am looking for something to let me easily keep track of some basic quotes on my windows mobile PPC phone. There are lots of fancy quote or charting programs for the PPC, but they have to be run separately. I am looking for a Today screen plugin or app that just keeps a few quotes constantly...

When I get a break between real work tasks, I will take a look at the b/a spreads on fotm ES and ER2 options. If I spot a super tight spread, I will often take the inside bid or offer and use that to make a cheap debit spread as crash insurance. This month, I have a bunch of ER2 NOV705/702.5...

I have read that you can buy software from CME that will let you calculate SPAN margin. But if you let the lack of an easy span formula keep you from moving to futures options, you are missing out. Open a small account with IB and put on some trades. You'll figure it out soon enough.

2/20. They have an interest in profiting, yes. They also have an interest in pimping themselves and getting as much AUM as possible. How much money did Hunter lose in the Amaranth meltdown? A CTA disclosure document reveals alot about their methods. A signal calling service may or may...