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This then means you must be hedging intra day and End of day. 12 or 24 times could be an easy hit. I have tried this in FX in a variation - with lots of liquidity - its amazing how quickly you rack up losses.

I like most of the post....and to your question. Plungers can do very well even over the long term, but you are already showing signs of not being plunger enough (if that makes sense.) The best plungers I have seen (if you can call them that) are usually very good at running their winners, even...

OCC - Orange county choppers? This has nothing to do with exercises. They were probably exercised/converted to shares by the broker with the account, and then sold in the takeover, but in this case the money in the account was never claimed. Part of the allegations and not being able to prove...

perfectly said..... (what I was clearly poorly saying in my first post. Scenario 1)a), 1)b), 1)c) =potential/probable whipsaws. sometimes I can be so dumb.)

Yep - reminded me of the line from the movie Dazed and confused.... Wooderson: "That's what I love about these high school girls, man. I get older, they stay the same age."

thats generally what margins are for, central exchanges and the ability to offset many accounts are ideally for.

probably more a thread discussion in itself, my bad for interupting the jokes section.....but theoretically probably yes. But you need the same terms for debt forgiveness, same interest rates, durations etc. Thats the slippage and leakage. In the original joke, you dont actually need the...

The joke is you dont even need the tourist and the $100 for this example of a closed circular indebted economy. Debt forgiveness with no slippage or leakage.

whipped cream tastes better when its licked off someone.

watching a science program yesterday.... if the world is pretty much made up of all the elements and everything here is made up from these then does that mean we also really are a little bit of a rock, dinosaur and other dead people as well! Not really evolution but still --- what a way of...

Stardust9182 - no offence taken. I rarely get offended, and yes agree its an interesting discussion. One thing I have learnt about a lot of these forums is that just because I/we/you may have a knowledge of something there is a lot of assumptions that others have a similar or at least partial...

thanks for the answer....I would never have thought of this as an interview question....shows how old I am, and that I learnt options trading by the seat of the pants and my own notes. (Natenburg helped) While it shows a knowledge of option theory I think I would be more interested in the...

why

to me JGills made perfect sense.....what do you mean he used a 'portfolio term'? (an academic term maybe?) If your comment was "how do both make money" from sle then you basically answered yourself before you asked the question...(or was it not really a question?)......JGills confirmed his...

same as my other post.... You should learn about the relationship between puts and calls and the underlying. This way you might understand that by hedging the put or the call, you are in fact turning your risk profile into a call or a put. You are not eliminating the risk, you are merely...

what happens after scenario 1) or 2).....? You have to deal with scenario 1)a), or 2)a) ....or worse --- 1) then 2) You should learn about the relationship between puts and calls and the underlying. This way you might understand that by hedging the put or the call, you are in fact turning...

I was asked this question by a fund manager many years ago who used to sell me options, I bought them - we both made money. Back in the 1990s.....I used to tell him, dont worry about it, dont think too hard on it, just keep selling them we will all be happy. :) --- maybe Trading journals is that...

You are missing liquidity and having to cross the spread as well as the fact that the move might not be in the direction you want, or the move occurs so slowly that the option you bought at 0.05 stays at 0.05 The real trap people fall into trading these things is that they trade too big in...

just watched the video - she clearly does a lot of good things - focus is on the process, just looks at the numbers, switches to large liquid market, high risk tolerance, keeps it simple etc..... But - she also clearly is ignoring some of the risks.....which is fine and is probably a reason...

I like the blunt/brutal honesty.....and if this is the problem ("the root cause of my trading problems was addiction to random rewards that undisciplined trading provides.") then no amount of tweaking a system a plan or a method will fix it. Even automation will not fix it......as you will...