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As a fellow traveler on the path to profitability I think you're on to something with the line about capping risk. I think risk management is one of the largest keys to successful trading. You find your edge. Many of them out there. The style of trading needs to mesh with your personality...

First one if you sell the 0.5 call @ 0.50 and buy the O.50 put @ 0.05 your synthetically short at $0.95 and the stock is at $1.03. Not a good arbitrage situation. With the $2 strike if you buy the call @ 0.05 and sell the put @ 0.05 you're long at $1.10 and the stock is at $1.03 So unless...

Pretty much have to exit it as a spread both legs at the same time. Only way to avoid it as far as I know.

Maybe a few of us should go together and author a book specifically on the butterfly as few if any actually exist. An entertaining Spring / Summer project.

Agreed. Hopefully the allocators for these large pension funds only placed a small percentage of assets with them and did their own risk management. Money in the good years for this alpha fund but completely inadequate risk controls for others.

https://us.allianzgi.com/en-us/strategies-and-solutions/alternatives/liquid-alternative-investments/structured-alpha-march-2020-performance link to their own internal review. Risk management had three structures. Strategy one just keep rolling down. Doesn't work well when market falls off a...

https://volquant.medium.com/epic-failures-lessons-from-volatility-funds-blow-ups-6f4226c8334f Some other stories of vol funds blowing up.

Makes sense. I guess in theory it would work but theory and reality are two different things.

Good points. I suppose they are bound by their listed strategies.

https://us.allianzgi.com/en-us/strategies-and-solutions/alternatives/liquid-alternative-investments/structured-alpha-march-2020-performance Above a link to Allianz own report on risk management. Context the fund shorted puts on SP and calls on VX premium collector. Did some hedging with...

From "Option Trading: Pricing and Volatility Strategies and Techniques" by Euan Sinclair Thought I'd share his closing words in the this book. Sums it up well on the process of learning. "There is no end to this process. You can keep learning but you will never have learned all there is to...

Thank. I think I understand. Is there a difference in buying power by doing it synthetically? Usually I'm buying these straddles on expiration day at 13-16 points or $650-800. I understand the risk is exactly the same if I'm long 1 /ES future and long 2 ATM puts but I'm curious if my broker...

so you mean long or short the /ES to every 2 ATM calls or puts? long 1 /ES futures long 2 ATM ES Puts?

Week 8 - Update Trading paused this week do to work commitments and travel. Planning to be back in it next couple of weeks. Going to fund up the account May 1 with a larger investment in 300-400 k range. So far have been trading a very small account size. Am thinking of some parameters...

it was 35. a typo on the original post.

Thanks! Appreciated.

Or... i've heard is said perfect souls don't come in perfect bodies.

Was married sixteen years and went through a divorce that took two and half years to settle. My closing thoughts there really isn't a way to save money unless you had a prenuptial agreement. Whether you want it or not the divorce sucks all the way around for everyone both spouses and with kids...

Could be all of it but as long as the winner runs it isn't an issue. I have some logged on my journal page. I don't put most of the /ES ones on as I can trade five to six of them entering and exiting throughout the day and the journal is mostly to log the weekly flies.

Sure Sheldon Natenberg - Option Pricing and Volatility Jeff Augen - The Volatility Edge in Options Trading Jeff Augen - Trading Options at Expiration Euan Sinclair - Positional Option Trading Euan Sinclair - Option Trading: Pricing and Volatility Strategies and Techniques Dan Pasarelli - The...