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It's firmly established beta is not acceptable. I've alluded to that quite a few times. Why are you still stuck on that point? Book delta as a term is a near hit, but not quite due to fact the number can be greater than 1. Leverage was suggested and may have to be used. Unless you have a...

Sorry, I'll type slower next time. Whatsa matter? You're a little cranky. Mr Market not treating you well?

That's because you're not applying the CNBC noise quotient. Every time the phrase "I see a lot of upside potential" is uttered you have to adjust KCI back 6 degrees. "It's a stock pickers market" requires a 9 degree rollback.

Atticus, you have no idea the option positions in my account, so I think it would be hard for you to critique it. I don't even think you understood my point I was making about GE. The daily fluctuations in GE share price compared to the SPX is approx the same as my book. You couldn't grasp...

A blind squirrel occasionally finds a nut.

That's illogical. The reason being, you could set yourself up a mirror account that is exactly opposite of what you set out above and it would have to increase by the amount decreased in the first account. If the sure thing is decreasing the first then the sure is increasing the second. You...

I do appreciate your posts. Tomorrow, I will calculate net delta and convert to $ terms. I'll see if I'm comfortable with that. I've been calculating book delta for the past year in a different way, but have come up with essentially the same result. My book's subsequent moves did correlate...

Can't be answered until we know what is at risk. 2.5% could be terrific if your trades aren't exposing you to a even a small chance of blow-up. 2.5% could be bad if you're highly levered.

I would think short 45 straddles for a 100k account would be more than a blip. Here's my performance over the past year up to the end of today, thanks for your time.

Thanks coach, what you have confirmed for me is my way of counting ends up with the essentially the same result, it's just done a little different. In your example of $100,000 thats ~ 8 contracts. If I want to trade with the market I add up my deltas to = 8 (which I know doesn't make sense...

Optioncoach, I respect your opinions. What term can I use to describe the books correlation to market moves? My book is compared against the SP500 and I absolutely need to monitor and maintain the level at which I want to follow the market. This is daily maintenance, and is really an...

My performance (which is scalable) is better than 90% of actively managed mutual funds and likely much better than the average hedge fund, yet I feel I'm banging my head against the wall here. I did start to describe what drives my trading but the elite traders can't seem to get past various...

Optioncoach, I KNOW what you're saying. Please read the next post. Stating a delta of 2.0 was my illustration that it was wrong to use the term book delta.

Yes a delta of over 1 *might* be considered a little erroneous. Do you see why beta might be a better term to describe the book's movement in relation to the market's movement? If you have another better term, let's hear it.

Book delta it is then! Thank you. I'll use it in a sentence: "My book delta is managed from a range of .75 to 2.0, inversely related to market sentiment"

Did you not want to use the phrase "diseconomies of scale"? I think thats what you were eluding to. For all intents and purposes, bigger the better does describe economies of scale. If beta is not applicable for a term that describes how the account moves with the market, what would be...

You mean scalability right? Economies of Scale would mean "bigger the better". Unfortunately I cannot come up with a better word than beta, the idea of which forms a crucial part of my trading philosophy. If I am making many bets where I think the risk/return tradeoff is favourable...

My quest is to beat the sp500. How much clearer do I have to make it? MOST actively managed mutual funds do not beat the SP500. As far as EMH goes, there was a pretty big IF in my statement. Again, the plan is to BEAT the SP500, and you say comparing to it is irrelevant. I don't...

Beta may be meaningless to you, that's fine, but if I am to describe what my system relies on, I HAVE to include it because it's important to me. The beta of the account is being managed from .75 to 2.0, market sentiment being the major factor. And yes I am just selling and buying calls and...

Regardless of whether the thief gets the money, it will likely be a law-changing case.