Search results

The basic position is the calendar which itself has its own edge in the proper markets -- markets which trade in a range, and on the low end of volty, and I anticipate no sharp move such as earnings. But the calendar standing alone is vulnerable, and the traditional adjustment is to place a...

Normally I would not put a put vertical, but if the position continues to move up, I may do this to hedge my call vertical. I would still give myself plenty of room on the downside, so I would not give myself too much premium on the put vertical. Not trying to balance it with a "true" IC, just...

Liquidated the RIG calendar at 320. I still have a BIDU vertical, but the rest of the positions are liquidated for Jul. I am pretty much at break-even for Jul.

As I read it, you are comparing the double diag with a single calendar. Interesting, but we are talking about a monkey calendar. That position has been defined in the first post of the thread.

jul/aug 700 put. I think I got in around 1000. Bailed out when the market was making a major move down so quickly. "Stepping in front of a freight train to pick up a dime" comes to mind.

The aug OIH does not have a strike price above 250, so I cannot place a vertical where I normally would place it. I contacted the broker and they will make a request to the exchange. ++++++++++++++++++++ Sigh, I hate to admit my stupidity, but here goes. I place a "quickie" jul...

Redeye, Dan Sheridan recommends taking off 50% from the original position and placing that on the second calendar. Thus, in a 10 calendar position, you now have 5 and 5. That is one reason I am looking at this method of handling the adjustment -- when you take off a position and adding...

I try to avoid a skew (large iv differences between front and back months). Usually means earnings or some other potentially major event coming up. I want a quiet market, not one that is going to be making a major event. No free lunch -- the market has a reason for pricing a skew. I am...

I have been giving a running commentary on my Jul positions. I am starting my August stuff -- I go 6 to 8 weeks out on my positions. If anyone is interested, bought 2 x OIH aug/oct 220 put for 580. Looks too bullish to place the call vertical. Wait around and see where the upside is before...

I closed the vertical because it had run out of premium. Rather than selling a lower vertical, I chose to close the entire position because it had moved so far. This is uncharted waters and I want to see what happens before throwing another position on. I go after high probability trades...

I have been using the calendar as an adjustment (creating the double calendar) for over a year, and designed the monkey calendar to overcome some of the failings in that position. The second calendar is rather unresponsive to continued move downward, relative to the call vertical. You need...

There are several websites which specialize in binary options, giving the trader specialized tools to trade them. I would suggest looking at some of these botique shops if you are thinking about going into that type of trading. Basically it looks a whole lot like gambling to me. I ran...

You should show the last person to post in a thread. Makes it easier to see if you need to look at a thread.

MONEY MANAGEMENT All right, here we go. Lots of fancy ideas on fixed ratio, etc etc, but one important thing is often overlooked ==>> the probability that my system will make a profit. Here I am, a light weight, newbie boxer and I'm going against George Foreman. What is my likelihood...

Some observations over the weekend: 1. Considering the major move in the market, the system seems to have held up. Considering both booked and unbooked profits, it is better than break-even. (Ignoring the BIDU, which is a long term position and bounces around several hundred dollars on...

Closed Bidu vertical @ 30, and the two RUT calendars @ 645 (ouch). I have the updated spreadsheet attached.

RUT lost money on the strong down market but the other positions actually made money, especially the BIDU, Liquidated the RUT vertical for 32 cents. In hindsight, my trading plan told me to take profit on one RUT calendar a couple of days ago, but I got greedy. Need to follow the...

With the market bouncing up and down, I am looking at "gamma scalping". When the market goes down, liquidate the short call vertical, when it goes back up, sell it again. I am not actually doing this, but it does look interesting.

You might want to look at cboe.com, and their training. Lots of webinars on the IC. Some basics: 1. There are two types of IC, low probability and high probability, depending on how close they are to the underlying price. Use common sense on how wide the spreads are. 2. There are...

"negative theta" Let's take an example. The market has made a major move and the short near month option is priced at 10 cents, and the long far month still has 100. We have two weeks before expiration. I assume you can see where there is negative theta in this situation.