Search results

Few more questions: 1. Would you say that gamma scalping brings significant part of profits for this strategy ? 2. If so, do you rather scalp often or wait for bigger moves ? Thanks,

Yeah, I had similar experience with IGEN. It was going up and down nicely, but after Roche`s decision went up to about 56 , so while I was long Dec and short front, my entire loss was my entire risk i.e. (dec-front difference). It happens. From this point of view indices might be more...

One of very few simple techniques which still works. However reward/risk calculation is crucial and diversification is a key. Sometimes this strategy can go through flat or losing periods so you must know how to manage this, not just to follow it mechanically.

Maverick, thank you for interesting post, however in many points I have to agree with GA Trader, while I have tested some of these ideas myself. First, volatile stocks with expensive options are much more likely to explode eating up your profits earned through few calendar spreads. Second...

Many of them become active when you get closer to expiration, so beside option cycles and depends what you trade, check your quotes later.

Hi dojibear, 1. Protective put - simple and takes some profit out but works in worst case scenario like the one you described later (sour day) However, there are some other adjustment strategies. 2. SSF - depends what you do. ETFs are not bad. See yourself.

This technique (selling ITM/buy underlying) has become popular recently for different reasons. If you find good option to sell is usually expensive due to volatility, so the risk is high. But if you want to use one being much less volatile the price is not attractive and combining with margin...

There were few interesting topics in the past related to gamma scalping. You may search through archive, I have filed some of them myself while opinions were very interesting.

Agree. Any bright person having large experience with Ivy League colleges graduates can notice that.

Agree. Judging by the type of questions posted on their (TS) website I would not expect much. Trading biz and seminar biz are two different businesses.

I was B type and have been progressively moving towards A pattern for a while, so I would say that usually A results should be better in long term run. As straight calculations don`t show all details, A model has less excitement, but higher level of self confidence. Agree that it depends on...

Sounds interesting. While Qs options work pretty well already, the demand for European style options is still growing.

There is not that much to add. I think HD gives you the best idea how to manage this. Any dollar spent for real option trading is worth at least 10 times more than a dollar spent on seminar.

Better late than never :) But if you use SSF then you need only 20% margin, which gives somewhat better calculation.

OK nslaughter, I have been trying to be nice regardless of invading my privacy but it does not seem to work. You are right - this not a joke but the threat from you. And I think at this point you have been going too far. I am not scared at all, neither interested in continuing this dialogue.

Sorry to say this, but my belief is that both strategies are not really great approaches to this trade, but considering possibility of gaping up or sharp upside move your ratio spread is too risky IMHO, especially using aggressive 1:3 ratio.

nslaughter, 1. Thank you for presenting so much interest in tracking my ET history :) It may sound like a joke, but I feel really honored by this. 2. No, I am not lawyer or so (I would not mind to be, but unfortunately had no chance to get such decent profession like this). 3. I really...

CELG is on my list due to high volatility :) But back to your trade: Some time ago I have done studies regarding this issue and believe or not but longer time to expiration did not really increase percentage of profitable trades significantly. Also, long call and short vertical bull spread...

My primary concern for vertical bull spreads is credit/max risk vs. internal price, but this is little more complicated issue. Do you short ATM or ITM ?

HD, I can see your point view now, and agree that it works. Also I believe that ICs are actually better for adjustments than btflys. The only problem with adjustment is that if you have to make too many you may lose anyway, e.g. if you have to adjust your position close to expiration then it...