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LTCM was a sham..Off the top of my head they were trading 50 to 1 leverage. Classic Salomon Bros circus act. Smoke and mirrors..

Like what you wrote,but the OP basically blew up trading basic shit and overleveraged.. Hes a white belt...he needs to get the basics down

The more I think about your thread topic,the more apparent it is that you are looking for the secret sauce. Dont get me wrong,it's a very good question.The problem is the very same strategies that I have made money on,are the same strategies that I lost huge sums of money on early in my...

If you are good option trader,you should be able to successfully trade almost any any asset . You do have to know the nuances of the underlying, I.e , fixed income vs currency vs equity.. If your game is direction, you do not have to be a great options trader..

Knowing when to sell certainly helps shift the odds,but not knowing when to buy it back /adjust is the key to survival.

Before you run into traffic blindfolded,come up with a very strong plan on how you are going to manage the short gamma and what to do if things head south..which they will

Add a zero to your number and you are getting closer.When I worked at Nomura and one of the Japanese horndogs (no disrespect to anyone) smacked a secretary on the ass ,it was close to a 1 million dollar grab. Anucha Browne got 12 mil from the Knicks because Isiah Thomas was innapropriate...

Sounds like you have that covered.. Are you a Value based investor or Momentum?

What books have you read?

Then what makes you think you can trade directionally?

No problem.I had the good fortune of trading/learning using OPM and have basically made every mistake known to man. Your first order of business is to cone up with some systematic method of trading directionally. At this point you do not know if you are a decent stock picker.You are putting the...

OK,you have no system,or a systematic way of approaching the business of trading.. It sounds like your orientation is directional trading.. First question,why are you using options?

You realize one mans trash is another mans treasure. What direction did you head in your first go round? Directional. Vs Delta Hedging,short gamma vs long gamma?? Can you stomach theta working agsinst you?? Can you sleep being net short options?? Help us out:)

If you are short vol,1 to 1 is a home run

That can't be all in.im guessing that doesn't include exchange fees Do they show market and size for flys?

On the topic of 4 legged spreads,how much commission are you guys paying..I was paying as much as 6 bucks per fly at IB and went over to TOS where I am being charged 2.40..Problem is,IB is far better at executing/routing spreads...Not even close

You are going to be long the Feb 1910 synthetic put for apx 11 bucks. But which exp Feb call did you sell? If its Feb 21 or later,you are good to go.. Sell the 1910 put at 11.7 and you walk away a winner

I could see where the confusion comes in,and replied to I Chef..I did not want to get into realized vol and path dependency. Your initial statement was 100% addressing IV and how it relates to theoretical pricing.You are now introducing variables that are not related to pricing of spreads/flys...

Holy #$%&,you are difficult:) All I am saying is your statement isnt 100 percent accurate "When IV decreases a FLY value goes up" You didnt specify,but if I read between the lines you were referring to ATM flys,and you are spot on.. For guys starting,they should run an option simulator and...

Thats a good catch. What you are saying is a stock can have a very low realized vol,i.e.moving/trending the same percent per day and certainly get to the long strike of an OTM call... I should have been more clear and related it to IV/perception of a possible large move.I didnt want to get...