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Instead of looking at the performance from the start date of the IBD 50,I took a look at the relative performance of the IBD 50 vs SPY from the 2/8/16 lows.The IBD 50 outperformed the SPY by apx 18 percent. That includes the 33% selloff of the IBD 50 vs the 15 percent decline of the S&P from...

Just out of curiousity,why did you go to a syn short straddle when you had 11-12 points in your pocket on the long??? Not trading Tesla,assuming vol was jacked? Regardless,nice trade

Looks like an Amex reunion...I was Salomons floor trader way back then.Mainly XMI

A little too levered for my taste.. "At the fund’s height in 1998, LTCM had approximately $5 billion in assets, controlled over $100 billion, and had positions, whose total worth was over a $1 trillion. At the time, LTCM also had borrowed greater than $120 billion in assets."

No chance you were continually short vol sellers at position limits and never had a losing month. If you are at position limit,how exactly do you roll into a position 10x larger? Im assuming you traded away from the exchange

Almost every growth/momentum trader would rather stick sharp needles in their eyes than average down.Stops are their lifeline.A counter to your belief is,Why buy more when you are clearly wrong on your assessment of the stock?? .FWIW there are several academic papers written on Value investing...

Not following you here "Anyone who trades options at all should be aware of the influence of dividends - because although they do not directly change the options price, they do affect the price of the underlying and therefore affect the options value." Dividends most definitely affect the...

Only the ones that I am synthetic long...

Hes all for holding dividend paying stocks,but not zero dividend growth stocks...Go figure..

It appears the OP is trading some sort of a spread where the max loss is close to the max profit.He will be limiting his losses to apx 10% of the max loss(debit in the spread),so he has an apx 12-1 reward/risk ratio barring any adverse gaps....Seeing the position would help

Here is your quote.. "Many growth companies do not pay dividend, no need to hold stock" Explain why you feel a dividend should have an impact on whether you hold stock or trade options. I get vol being cheap or rich,and I get skew.I dont get the dividend reason.

Thats what I thought.. What sort of movement in the stock do you need to realise max profit,and "max loss"?

How can your max loss be 10% of your max loss??? Are you setting a stop loss on the spread?

But that has nothing to do with the dividend.... If vol is cheap/expensive,you want predefined risk or you think the skew is favorable,thats one thing,but I dont see how the dividend rate should factor in to whether or not you buy stock or get synthetically long.

What does a dividend have to do with whether or not you hold stock??? Im sure you know that the price of a call option is affected by the dividend rate...

Pro traders run simulations..

Here's your real issue. By selling covered calls,you are essentially setting a profit target(and reducing delta). In your case,your upside is limited to the percent out of the money plus the premium received.Lets just say your target is 25%. If you are setting a target(max profit),how much are...

Which is why I said he is punting.....

Here is your real problem..You are punting...From what I can tell,you havent formulated if you are a value investor or a growth stock trader. You bought in around 90,and havent mentioned any particular set of metrics that made the stock attractive.Now that you are down close to 25%,you are...

Im very surprised that a total return swap doesn't offset capital game status. Seems highly unlikely. It's been a while,but I do recall that if one bought a put option within X percent of the Stock price, the holding period was "reset" as one effectively shorted a like and similar...