Search results

Ahh thats right!! How could I be so silly. Carry on.

No. Your posts are very much about "being long time decay". Something those sites only promote. What's wrong with being long a straddle?

Out of curiosity, how much tastytrade/optionalpha do you watch?

IMHO that was a sales tactic. If you sell a delta 5 for a nickel, it only takes a small adverse move and an increase in vol to turn that nickel into a dime. I cant imagine he closed a delta 5 every time it doubled in value (would happen quite frequently). But it sounds very good on paper. When...

If you take a look at the spread sheet, you will notice he continued to sell calls as the position went against him. He had no intention of hedging his delta/vega exposure (and all his other 2nd order risks). To me it looked like his trading model was "It won't go there and if it does...well it...

LOOL. Good sense of humor you have mcnoob!

Neww I am surprised at the comment "one would argue you are just left with risk premium." You are an active investor! I was thinking, maybe 20 years from now, people will be looking at us saying those were the days when....

I was not trading in the 90's and I was curious to know what is was like trading options. Were the most liquid names comparable to trading the least liquid names today? Was it easy to find "cheap" convexity/were premiums unjustified? What were some of the top strategies?

Thanks for the laugh

I agree, I think it is fake news, but c'mon man don't kill the fun!! On the other hand, you have to think about how uneducated his clients were about options. I mean one look at that spread sheet would have any reasonable investor running for the exits. So I would not be shocked if he actually...

"It's much easier to predict where a commodity won't go than to predict where it will go" - James Cordier. I hope the courts do not turn a blind eye to this. What do you guys think? Does he spin this the right way to the jury? LOL one look at that spread sheet and you can tell he was thinking...

He was targeting 25% net of fees. Assuming 2/20 He was looking for 30%+. Thats a big difference then targeting 10%. Optionselling.com stated their strategy was selling 6-9 month DEEP OTM options (in their book they mention selling a delta 3). Achieving a 10% return selling delta 3's 6-9 months...

This is very untrue. Selling crash protection is a viable strategy if done with an actuarial mindset. "Only idiots sell them" is only one reason why they are usually over priced. You can get quite large rather quickly selling crash protection(in over leveraged amounts) if you accept the fate...

They were over leveraged. Trying to make 25% a year net of fees selling deep otm juice is far from a good idea (especially in low rate environments). BUT I find it fishy that a guy who has 30 years experience trading commodity futures blew up on a 40% NG move over a 10 day period. These moves...

Nothing like a good laugh to kick off the weekend!

HA! thanks for the little intro, but you are really looking for some of the big boys @sle @Kevin Schmit @destriero @newwurldmn to chime in. But I will give it my best shot as I to spend a good deal of time working/improving my hedging frequencies. First thing I would say is understand your...

maybe i have had too many glasses of wine, but i literally had to take an Advil after reading this.

hey tommy, could you elaborate more? Something tells me that didn't make any sense.

Hey guys is anyone here still using quantstrat? I have noticed many people have moved over to pyhtons zipline (and for good reasons) but I was curious to know if quantstrat was still the best package for backtesting with R. I would much rather use a product that is supported by CRAN. Thanks

I think you should take some time to read about what options are first. This is way to general of a question to answer. But in general if you think something will go up, buy the linear asset (futures, stocks, etfs) If you think something will go up in x days by y amount and the option is priced...