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It's a mix of indicators (stochastic, moving averages, etc), hedge ratio analysis (part of the pair trade methodology) surrounding the core idea being relative value and capital movements. If it's a high probability trade then I just commit a small portion of the capital per trade. However...

2007-03-19 Trading Activity : Initiated long position with DAWDO - DIA April 119 call @4.60. Open position : 1

Jeff, I have been testing the model with put stragey and will implement it once I have obtained satisfying results. Thanks.

JW Trading Journal : 2007-03-16 Result As the DIA March 125 call (DAWCU) became expired, it concluded the first half of the monthly result. Yesterday the indicator changed at the last minute which resulted the long of DAWDO got filled at $4.20. The position was closed first thing this morning...

No I sold that call on 3/9 @3.10. Please refer to the log file at the above post, thanks.

All I know about option is buy call if I think the underlying security is going to move upwards. But you probably know that already lol. Sorry I probably can't really help you with your options trading but you can start with MacMillan's "options as a strategic investment", it's a really good...

heh I can tell fickle was just joking :) Classic Nick Leeson move. nontheless a right setup is always a good idea. Best of luck, Neke.

JW Trading Journal : 2007-03-9 Result - A week of recovery Today the model forecasted the correct outcome of higher DIA(+0.19) than SPY(+0.04), but unfortunately the move was not big enough for the options to move to the upside and obviously time decay got its fair share of the coming...

Log and Performance Chart

JW Trading Journal : 2007-03-8 Result - Taking profit and changing gear a little. Closed SPY MAR 135 Call @5.90, + 59.5% Closed SPY MAR 137 Call @4.00, + 11.1% 2007-03 month to date return 4.89% 2007 year to date return 9.65% vs. 2007 year to date SPY (S&P500) return -0.62% Initiate...

2007-03-06 Trading Activity : Initiated long position with SPY March 137 call @3.60. Open position : 3

2007-03-05 Trading Activity : Initiated long position with SPY March 135 call @3.70. Open position : 2

Thanks gg12 for your suggestion. I always try to learn new stuff and incorporate it into my model. If it increases the overall balance between total % return and accuracy for the back testing period then I would implement the new rules. Over the years I have tested with different time frame...

Thanks gg12. Yeah I'm sticking to my rules and the systematic way of trading really takes away the mix feeling and second guessing. I have followed the model and closed the lower strike call today with a small loss (argghh if I bought at the market open today instead of market close...

(Yikes am I gonna be the only one going long here?... :confused: ) Initiated long position with DIA March 120 call @3.60. Open Positions : 2

Austinp, Thanks for the feedback. I guess I was a little misleading when saying "buy-only, uptrend bias"... What I meant to say is that, since generally speaking the 'overall trend' (not in any particular period) the market has the expectation of moving higher into the future, AND if I am...

gg12, Yes you are correct. It is a systematic approach. Most of the factors you have listed are explained and controled by the model already. I adjusted it to be a Buy-Only strategy because I believe the market has a long-term uptrend bias. My holding periods are too short for...

Thank you for your suggestion Wayne. The methodology is a combination of many customized indicators. But the core idea is finding the relationships between different investments so I guess it can be called a Multifactor relative value trading model. I do look for entry and exit point with...

2007-2-22 Initiated long position with DIA March 125 call @2.65.

2007-02 month to date return 4.77% 2007 year to date return 12.79% vs. 2007 year to date SPY (S&P500) return 3.08% Open position: 0 Refer to yesterday's post, the remaining of call options were sold at open on 2/21/2007 @3.5 which should've been sold @3.8 the previous close. I guess I...