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closed jan 800 call @0.05

Nice! A combination of ITM, CTM, and OTM is indeed a very good strategy. I am still holding Jan 810/800 call and Feb/Jan 790 put. Will close the calendar after 3 pm today. If you look at RUT for the month, it stayed at around last settlement price. Jan should be a good month for those...

What are the steps to become CPO?

Mark, This is the problem. I am comfortable with the greeks for the overall portfolio. However I don't think the greeks tell the true picture. For example, I had a theta of 600 yesterday, but that 600 didn't show up after one day even rut went down and IV increased this morning (I have...

CTM/ATM spreaders, I opened a calendar spread RUT Feb/Jan 790 Put last Friday, and I wonder how you will exit this trade (Sorry that I didn't have the exit strategy when I opened this trade). Will you hold the position and take the settlement risk? What will you do for the following cases...

I bought ATM calendar Rut Feb/Jan 790 last Friday. How do we exit ATM calendar? I have burned once by a gap at the settlement morning.

piccon, any update on your ctm verticals?

close rut feb 730/720 @0.5. Release margin for future opportunity.

closed jan 850/840 call @0.05 x 5 closed jan 730/720 put @ 0.15 x 5 (that was 2 days ago). As of today, the portfolio is up around 1.5%. Since there is no interest in this journal, and this journal serves no purpose. I have decided to close it.

No. Almost all hedge funds use leverage and they use the same measure (of your choice of course).

Ursa, I respect your knowledge of synthetics. However, every strategy you open, you will breakeven on average (excluding commission and slippage). I don't have to read any book to realize it. Understanding synthetics will not make me/you a profitable trader. I'll like to see how people...

I have the same impression from part of the book downloaded from his website. It was not an easy read for me. If you want to be one of them, ask their recommendations. :p

Seriously, how is Cottle's "Option Trading: The hidden reality" compare with Baird's "Option Market Making" or "Dynamic hedging" by Taleb? I don't want to spend too much time in reading. Instead, I prefer to trade, to write software, and of course to read posts from you guys. :D Please...

And then resell your electronic version for $40 in ET. :D

Tower, You don't think his new book "hidden reality" is better than the old version?

Coach, With TOS having futures and haircut-like margin in April (I believe IB will provide haircut margin in April too), why will you need a proprietry account?

piccon, I hope you don't mind we are using your trades as a case study. We are here to learn. If you feel my message too irritating, please let me know and I'll stop. It seems that your profit of CTM swings too much. I learned from a portfolio management class that the goal of a...

MajorUrsa, I agree with you on Natenberg. I haven't spent a lot of time in studying synthetics (but I knew the basics), as I am convinced that there is no arb opportunity for any retail traders. I have a temptation to buy Cottle's book but it is too expensive. I wonder how useful it is...

FYI. Just check with TOS that they will start in April the new margin rule (portfolio-based margin similar to that of haircut). We might want to devise strategies to make advantage of the leveraging but in the same time avoid the temptation of over-leveraging.

Cache, We started this discussion by comparing piccon's trading style with mine. Piccon's trading style seems very different from you IMO by looking at the way he managed the trade. 1. He made a directional bet by selling a ATM or CTM put vertical. 2. The market reversed as predicted...