Search results

Arnie, Arnie, Arnie "Great, a National Holiday and this guy's got me looking for a rope and a tree......." You are missing the point, again. My comments were meant to get you thinking about the way you trade and perhaps consider other choices since the ones you are using currently aren't...

Arnie Knowing the greeks will not necessarily make you a successful trader, but it will help you understand your risks better. Now, from your previous posts I can see that you still haven't learned about the dangers of long naked put positions...

Hi Arnie Greeks don't need to be very complex. Simply look at your position and you can work most of them out. The greeks just give you another way of looking at and quantifying the risks inherent in your position. So I'll just add a little to mte and algorithm's excellent posts. You...

alanm wrote: "I was short a bunch of puts that were already ITM, and went further ITM. None of them got assigned." Depends on how much extrinsic value was left in your puts. daddy's boy

JimmyJam and aardvark, you're right. I thus, hopefully, put this post to rest and get back to trading, lol. daddy's boy

GA trader wrote: "Get the ff books from these authors to get a good basic to intermediate background in options, open an account and trade 1q lots, record your trades, the date, IV stock levels and learn from them. Starting from basic to advanced. 1. Mcmillan, Larry 2. Natenburg, Sheldon...

nlslax wrote: "Most of my/our trades are either neutral or only slightly directional. The idea is even if you are wrong on direction, there is still a better than 50/50 chance you will make money." I don't think that's quite right. Your chance of making money with credit spreads or...

Trader xx wrote: "The stock stays constant, but the time value of the option keeps decreasing as time passes. At an point hte trader can buy a call for cheaper" Correct if volatility stays the same or decreases. You need to remember that the extrinsic value of the option is made up of time AND...

Come on guys - take it easy, after all, this is only a forum and nothing more. If one can't control one's emotions (and ego) here then how can one control them in the markets? daddy's boy

cnms2 wrote: "Once you opened your trade execute your trading plan, and resist any temptation to change it." Cache Landing wrote: "Whenever you adjust or close a position, it should be based on your current view of the underlying" So which is it? Stick to your plan/stop losses etc. or fiddle...

"Over 90% of the people who attempt to earn a living from trading fail in this endeavor" Does this statistic include people who try a little bit of trading, say a few months, to see how it goes? Or does it include only those who are making a serious, hard effort, say over a couple of years? My...

Ta. daddy's boy

Dear sle, SLE wrote: "This said, you might not have a choice (i.e. if the MMs are trying to pull a quick one on you or quoting you a really wide market). In that case you should do the long-gamma leg first." How come you recommend doing the long gamma leg first - I would have thought the short...

Often a one leg trade gets adjusted and becomes a multileg one. Or you could start off with the goal of getting a fly and leg into that in bits and pieces, say the debit spread followed by the credit or whatever, and turn it from a negative expectancy trade into a positive expectancy trade -...

Correct. daddy's boy

"Steve.....sarcasm is the lowest form of wit." But it's very funny and entertaining - I'm still rolling around on my floor! daddy's boy

There are a number of ways to use collars to generate profit rather than just lock in pofit. J L Lord has a book at randomwalktrading.com. And, no, I am not affiliated or spamming. As a matter of fact some traders only trade collars and make a nice living but one does need the capital to go long...

It's a lot faster to use some software pricing model. That way you can adjust for iv and time decay also and play around with the different scenarios/greeks. Daddy's boy

yes - generally the strangle is cheaper but often requires a bigger move in the underlying, simply look at the risk graph and you'll find it's self explanatory. It all depends on your cost on opening the trade, i.e. your initial debit, which in turn determines your breakevens. daddy's boy

It's a veritable (and free) treasure grove, lol. Btw, I like donnav's post, he knows what he's talking about. daddy's boy