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Waiting for set up, looking to short

Think I might try posting some trades here. ES killed me a while ago but I have since improved. Either I will embarrass myself or show some profitable trades.

Although it will now be difficult we will none the less try and move forward.

I think because I don't come across as a person who looks up to Eckhardt you are taking a slight offense to my posts. How many traders trade in a way that cannot be backtested? Not every trading method is something that can be broken down into numbers that can be applied to historic data...

Ok maybe it wasn't obvious in my post but I am not the truth bringer of facts. I wanted to say that I feel that I can better use my time learning other methods of trading as opposed to backtesting. With all of the "great" traders/investors out there how do you determine who to imitate if...

Well first off I do not know who that is. Second, I don't believe that the way to profitable trading is to see who made the most returns and try to mimic them. Buffet, James Simmons, George Soros, Jim Rogers... I do not think they ever envied someone, bought all of their books and became...

Hey I've got a few comments and questions while on the topic of backtesting. First off I want to say that in the begining backtesting as a useful tool made sense to me. As I started to try and understand the science behind market fluctuations I eventually came to the conclusion that back...

And I know this is "elite trader" and just for the record I have still been very ambitious with regards to trading. I trade options on an infrequent basis yet keep up with the market daily. Currently reading "trading and exchanges" by Larry Harris and on deck is Natenberg's "option volatility...

Got a little update here. I bought a 2 fam house at the end of October '08. After low balling a few houses I scored this one which was a short sale. The average selling price of homes going back three months from the time I closed in that town was $402K. The appraisal was $410K but that...

I say before trying to learn how to trade learn who is in the game first. Technical traders, quants, value investors, arbitrageurs, news traders, market makers, block traders, hedgers, manipulators, brokers...etc. What are you going to do to take money out of their pockets? What are you going...

Thanks Mark, should've realize I said maximum when that cannot be true until expiration 55 or better. So I take it that this is good to know but would not be something that will ruin your day if you do not check for the alternative. I just didn't know if a certain strategy could be...

I used the search and couldn't really find anything. As I keep reading and learning I realized that there was something pretty obvious that I needed to understand before I go any further. Lets say I bought a 50/55 XYZ call spread. The spread is now ITM with a couple weeks till expiration...

god dammit. Its not like I said $45 I was only off by ten. lol j/k thanks for the correction.

Your thinking along the lines I did not too long ago and here is what I know now: XYZ stock is trading at $50 today. If you buy a 60Call on XYZ stock for a premium of $5 and IF you plan on holding till expiration (naturally that is what I thought you do when I first read about options) you...

Just purchaced the book. Thanks for the recomendation.

Now thats really facinating, I had no idea how things really work for a MM. Not to get too off topic but do newly hired MM's have a high fallout rate? I mean it seems like a couple wrong moves and you could really be wiped out. Or is there a world of preliminary requirements before you are...

Sounds very interesting and is starting to make more sense. So let me get this strait, you first recognize what you deem an "anomaly" in the vegas within a range of strikes. Sell the strikes where vega is relatively high and buy the strikes with low vega. Is this a sort of arbitrage? Since...

I had to make two minor edits where I used the word long instead of short.

I am having trouble just trying to put things in perspective when only a change in underlying occurs, all else equal. As soon as I get that through my thick head I will advance myself and look into the great points you bring up. Thanks

Let me try and run through this senario as it has been bothering me the past few days. "Neutral" doesn't seem so for very long. Of course this will require that some adjustments be made but first step is to understand what happens to the option price when one variable changes. First I want to...