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I don't buy them hoping they work out. I buy them for the exact reason dmo points out. Was just looking for a clarification of a typo.

I'm just asking because it looks like a typo in the original post. Buying premium in the wings. Long the wings.

you mean buying in the wings?

It *sounded* like I caused confusion. I'm not in the industry but I'll remember your recommendation. Thanks

The tidbit about the otm put purchase was just to illustrate how I brought my leverage in slightly (the Number), the fact they are half price on a random walk up yesterday compared to the previous day was an aside that I found slightly interesting. I didn't lay out my philosophy. I just...

I still don't know what inconsistencies to which you refer. You found a few typos but what else was there? Look, we couldn't get past the basic idea of "the Number" and I thoroughly confused everyone by stating relative returns. I just can't see my ideas on sentiment going anywhere.

Fair enough. I know it will take time. I'm not expecting anything in the near future. Perhaps take a second every month a check on my progress. 1 year is not statistically significant. On the other hand I think the analysis could be sped up a bit due to the fact I've got 240 data points per...

Atticus, you truly crack me up. If you can't understand the beginnings of this trading strategy, well, ...I can't dumb it down any further. Any relevant message you are trying to get across gets lost in the vitriol. I don't have an advanced finance degree. The concept of my trading is...

Atticus Junior, err, I mean xflat, your silence is deafening.

Phil, we just diagree philosophically on this minor point. From my previous post it is easy to calculate absolute return. It is my contention that absolute returns mean almost nothing unless there is reference to an index. I'm truly not trying to hide anything, it's just part of my philosophy...

I don't calculate it that way, it would be misleading as you're alluding to. I am neither negative for 12mos nor ytd. Put another way, IF this was a fund and someone put $100k into it on Aug 14, 2007 and also into the SP500 on the same date, The SP500 acct would show approx ~$88,250...

How do you mean? I'm not negative...

IF I were to compare in like units, the SP500 right now is 1275.35. Using THAT measure my book is 1697.11 That's from Aug 14/07 to this moment, just under 1 year.

Which part is causing you confusion?

I don't I have EVER said that I am up over 35% in the period. I have always stated my return compared to the SPX. It's part of my philosophy which guides my trading. Please point out where I said otherwise and I'll make the correction. I'd like you to point out some of the many...

I NEVER said those strategies were no good. You can't dichotomize them into good/no-good. They are just TOOLS. There is no edge to ANY of them. If you look at my book, you will examples of all of above strategies, but that doesn't mean I am employing them at the outset. It comes down to...

Selling call premium has saved my ass the past year. I have 4 types of positions, all on the SPY: long calls, short calls, long puts, short puts. Simple as that. The sum of the naked shorts, iron condors, short straddles, collars, strangles, double diagonals, lottery tickets, etc are...

Isn't gamma a measure of how delta changes when the underlying changes in price? It would seem misleading to say my book currently has a gamma of 1.1, wouldn't it?

I'm not referring to the return of GE, I am talking the daily standard deviation compared to the SPX. No, I'm not down 30% but I think I have to refrain from my unsubstantiated claims.

There are a number of reasons for options. 1. allows for much easier tweaking - as I mentioned earlier I manage my leverage from .75 to 2.0, and can quickly sell an atm call if I want to bring it down slightly, or on major red day, buy longer expiry OTM calls. 4 pm today gave me the...