Search results

Tom .. i lost you on the last paragraph. XYZ at $150, you put on a cheap otm calendar at 155, 2 days to expiration, xyz goes to 154, you buy back short and sell the outer month, now you have the vertical for credit. how can there be risk?below is back of the envelope simulation... leg1 is...

tom. that payoff you were describing (morphing it into verticals is insane)

If you think 2450 is an inflection and you have a little inkling up or down, then put on some skipped strike flies. The asymetrical fly has much better returns if you are willing to stick you neck out a little bit as to direction.

I guess flies and condors can be good vacation spreads a long as they don't expire during your vacation week where you don't have access to your account. You need to have access to your account in case the stock settles close to your short strike and you have to deal with assignment.

tom.. I like the way you put it... "If you like to play in different dimensions..." which is the nice thing about options. How about this?.. instead of paying the option spread everytime you put on a put hedge, think creatively and use the options as the your underlying and use the stock...

ironchef is correct. Options prob not the optimal way to daytrade tickers. IF YOU MUST, your best bet is to do an ATM vertical where both legs straddle the current price. It is most likely the most liquid, and the least exposed to the other greeks (theta,gamma, vega)- the closest delta play you...

turco.. I would listen to this advise. I think Jones just dispensed something truly worth backtesting. (thanks for giving me more work Jones75! ...lol) I like that Thursday entry..

I can't tell you what MT can do BUT I can list some things that AB can do and you can take it from there .. 1) You can create triggers based on foreign tickers. ex. given a list of energy stocks you can create scans/backtests which introduces a foreign ticker into your buy criteria like WTI...

What is the rationale underlying these rules? For example, not using spreads exposes you to greeks you might not want to be exposed to. IF you want to trade direction, spreading is best for you isolate vega. I assume you don't want to trade Fridays due to theta? . Google Jeff Augen- he posits...

An opposite system for me might be modelling out a different prob distribution of a stock to fit an options position.... so I might be looking for a quiet setup to put on an at-the money fly that pays me well if XYZ settles around the same price 2 weeks from now. so I would be backtesting a...

They are not called "brokers" for nothing.....lol

He said a bunch of them within TH are looking to be bought by some HF BUT if it falls apart, nobody knows. so next months are pretty critical. I did not talk to him about the components ie US, foreign,etc

very well said ... speedo...:-)

If the opposite of a losing system is also a losing system, where does the money go? Trading is inherently a zero sum game? unless of course is it a marginally losing system, then yes-the vig will erode the other side but if a strat is 35% winners, with a reasonable risk :reward ratio, then...

just checked out his site.. love that part about 1 of the reasons most option traders lose..." too much emphasis on the greeks" reminded me of that Karen the supertrader interview at Tastytrade. When she said she does not pay much attention to the vega which means she did not pay attention to...

could be something as simple as exposing one of the greeks,getting lucky.. then slapping on the missing greek on the opposite side to bring the entire curve above the line. Nothing mysterious, but risky up until the layer gets put up.that hard edge around $241.5 tells me one of the contracts is...

Sure henry... so let's say I want to model a strategy of a butterfly that pays best when it settles in 2 weeks at the entry price. Ex SPY=$200, I wanna model expected return on 190/200/210 fly BUT the backtests indicates that 55% of the time it settles a tad higher ie $205-207 . I would then...

I do it all the time w my option positions. I would zero in on a spread ex. ATM condor, and I would backtest and see it win 35% all the time- then I get to work- taking filters in/out, adding,etc. THEN. I am like .. what am i doing! just go with the initial bad filter and shift strikes to find...

Hello ET traders! Just published Rnd-005 which is a bundle of 3 research reports. This 57 minute collection of streaming videos covers a myriad of topics such as backtests on put selling on low vs hi IV / backspreads , high order greeks-- charm and vomma, implied volatility ranking, samples of...

Given a particular term structure FranT's diagonals would make sense. Option trading is a lot of art backed by math, few absolutes. IC, flies should be avoided when vix is at 10, middling > 13, but great> 18... FranT, ever figure out that risk graph on the other thread?i am intrigued by that...