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  1. Y

    Trading is a Business

    There's no bar exam for trading, or medical schools or residencies People look at it as something anyone can do easily, and so they go ahead and try. In their eyes it is not a profession if you're doing it on your own, and certainly not one as difficult as writing legal briefs or diagnosing...
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    ES post frequency and wordcount analysis plotted against SPY

    this is awesome!
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    So I've Been Paper Trading &...

    Try using a paper trading platform like Think Or Swim's (it's free) for a little more realism.
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    Learning to read Price Action with P&F Charting

    Hey, Sold out of CMI when it was at ~74 (Sold call option for $4.20) +160 ABT is most likely going to expire worthless for a $125 loss. Oh well. Anyway, time to look out for new opportunities.
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    Learning to read Price Action with P&F Charting

    Nice call flyinglead, although I'm still glad I didn't get in on it, kind of illiquid (50K volume). Hope it goes well for you! I held EGN for a day, made a quick $50 off of it. Currently I'm just long CMI and ABT. Also, FlyingLead you are right, JNJ has never been above 70 (or 69, or 68)...
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    Learning to read Price Action with P&F Charting

    Hmm, yeah a breakout above 70 would be very significant, I will definitely be keeping an eye on it
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    Using index ETFs for delta

    The inverse mimics the percentage not the dollar change - that wouldn't make any sense. If SPY is up 10 bucks, or 10/125 = 8% So, SH*0.92 = 70 * 0.92 = 64.4 For a loss of 5.60 5.50 profit - 5.60 loss on SH stock = 0.10 Loss. So I guess this would all be dependent on what price...
    • yayt
    • Post #32
    • Forum: ETFs
  8. Y

    Using index ETFs for delta

    You're right, but do you understand what I am saying now? I believe possible screw ups with this would be tracking error, which could be mitigated by selling deeper in the money calls. If you understand what I'm saying and you still think I'm wrong, I'll finally accept defeat ... lol...
    • yayt
    • Post #29
    • Forum: ETFs
  9. Y

    Using index ETFs for delta

    This seems to be similar in principle to Buying a stock, selling a call and buying a put (a conversion). Except in this case, the Put you are buying is the inverse ETF stock with delta of -100. As a result, are you saying a conversion is the same thing as being naked a call?
    • yayt
    • Post #27
    • Forum: ETFs
  10. Y

    Using index ETFs for delta

    Of course, I completely agree. I just thought that the use of inverse ETF would bring the same effect WITHOUT being naked the call.
    • yayt
    • Post #25
    • Forum: ETFs
  11. Y

    Using index ETFs for delta

    Ok, if I understand you correctly: August 1st: Buy 100 SPY Sell 1 Aug Call Buy 100 SH (1x Short S&P 500) Sell 1 Aug Call The SPY and SH cancel each other out for a neutral stock position. On August 15th, one of these gets called. SPY is called away. Currently Long SH...
    • yayt
    • Post #23
    • Forum: ETFs
  12. Y

    Using index ETFs for delta

    Thanks xflat. I understood most of what you said and you're right that the positions offset each other. Perhaps from the brokers point of view you are naked but your risk isn't similar, since you actually own the underlying, no?
    • yayt
    • Post #21
    • Forum: ETFs
  13. Y

    Using index ETFs for delta

    Ok, I seem to be wrong but still don't completely understand why. When you write the call you receiv the premium, you don't care what the price does after that?
    • yayt
    • Post #15
    • Forum: ETFs
  14. Y

    Using index ETFs for delta

    but you still own both so you can meet the assignment of one and then sell the other, and start over
    • yayt
    • Post #14
    • Forum: ETFs
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    Using index ETFs for delta

    when you are writing a covered call, your downside risk comes from the stock declining more than the premium can offset. Since you are delta neutral on the stock, you can just sell the call and get assigned - or not. I don't understand how this isn't a "riskless" way to collect call premium
    • yayt
    • Post #11
    • Forum: ETFs
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    Using index ETFs for delta

    cvds, I don't understand You are long: Long etf, 100 delta Long the short etf, "-100delta" In effect you have 0 delta in theory , And then you write a call Can you please explain again why that wouldn't work ?
  17. Y

    Using index ETFs for delta

    unless I'm missing Something that should be obvious, if Your net delta exposure is zero then you would just Collect the call premium and happily get assigned
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    How do you guys trade off of range bars (or Heikin Ashi)? *pic*

    make your range Larger
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    Using index ETFs for delta

    Wouldn't that be a risk free way to collect call premium ?
  20. Y

    Learning to read Price Action with P&F Charting

    So after reviewing some charts, I think EGN might also be good to pursue ... I'll let you know if I go long IBN, short EGN I really need some way to see what the news stocks are and the ones with the most volume, something like EGN would have been a ridiculously easy trade today ... and no...
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