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R/R & POP Concerning Various Spreads?
I look at Garch via Hoadly but as I mentioned its more of an academic exercise than an "indicator" I use to trade. I try to put on positions where I still have theoretical edge with shifts in a single forcast vol.. At that point,its a directional bet,hopefully with edge -
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R/R & POP Concerning Various Spreads?
For the more advanced stuff,I use Hoadleys program and its really more of an academic exercise,but its a starting point along with Vol cones etc. Most of my trades are skew bets,betting/praying on Sticky Delta and I am almost always long the wings,if for no other reason margin purposes..I tend... -
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R/R & POP Concerning Various Spreads?
IMHO,if you are a decent directional trader you will be light years ahead in your vol trading.. It affords you the luxury of being less aggressive on ratios/split strike flys and enables you to keep your gamma in check... My style of Vol trading is super "labor" intensive and is much closer to... -
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R/R & POP Concerning Various Spreads?
Great thread,and interestingly I am trying to morph into a directional trader and lighten up a bit on spread trading/ Delta hedging.. While I trade limited risk spreads within certain r/r requirements,that is secondary to having edge,or what I perceive to be edge. My method of quantifying edge... -
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Selling covered calls LEAPS
Lol!!!! Yeah,I would hate for the Newbies to start picking guys like us off:) -
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Selling covered calls LEAPS
Basically he's getting a 3.5 percent Div..As long as he is a long term holder and happy with a double from here,why not.. If he looking for downside protection,that's not the strike. Only slight negative is vol is CHEAP -
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My Awesome Trading
All in .25... Only use limit orders Commisions are 25% of my P and L.... -
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My Awesome Trading
thats most defimetly not the case...:) It was a mindless semi arb,that took a bit of market making skill.. It has completely disaapeared... -
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Where is my mistake?
Max loss if assigned is .78 minus whatever the long put sells for. What whipsaws are you talking about??? -
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Where is my mistake?
You are really complicating this. He's got a small embedded short Delta. Should the stock drop,the conversion will go his way with limited profit. Why lift the entire short leg ?? Totally different bet -
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Where is my mistake?
As long as he understands the bet he is taking,it's not a big deal. Trading an OTM conversion with less risk of being assigned will be priced accordingly.No free lunch. I don't love the bet as vol is so cheap.If he gets assigned,the residual put will be cheap.. My guess is the risk reward is 1:1 -
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Where is my mistake?
Thats a ballsy move exercising at 136 to collect a div Whats the residual value of the put at 136,stock trading ex div? i could possibly see a 137.5 ish exercise,but thats no layup.. Vol is super cheap -
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My Awesome Trading
What percent of spot do you typically sell?? And I still do not get this "The biggest gains have come from holdingstock while waiting for it to be calledaway" Regardless,well done -
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Deep OTM put does not fall although stock is up 40 %
18 debit??Thats a gnarly little bugger Short and good down to 4.5 Im doubling up when my spread goes to 1 credit..Should take about 18 nanoseconds -
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Deep OTM put does not fall although stock is up 40 %
Well that didnt take long to get in trouble.. Im in the Oct 33-25 16 Split strike fly for a 30 cent credit... -
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Deep OTM put does not fall although stock is up 40 %
they blew up the OTM downside 80 vol handles or so..Coming after the puts..Short interest above 60%..Can the stock be borrowed or do they charge you your first born?? -
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Which puts to buy for tail risk hedging?
Why don't you look at Orats and run some backtests?? -
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what happens if you're long puts when a stock goes to zero?
I typically get naked and start dancing