When I say it's obvious,of course I am talking in theory...
There are very very few who make a real living from trading,no different than professional athletes
My first reaction was,"Well thanks Captain Obvious",but there may be some genius in your wisdom,and imho,it's largely dependent on ones "money management"...
Gun to my head,Ild probably add trade with the trend..
Says the broke entrepreneur who would have done more with his life if he had millions..
And what might a struggling entrepreneur be doing trolling on a Trading board???
Gotcha,you never delta hedged in any manner,be it stock or selling options..
It's easy to judge in hindsight,but it's fair to say a 25 percent drawdown of assets is a bit much for a single position...of long vol no less
P.s. why don't you take a look at Orats??
Overtrading has nothing to do with bet size.You are confusing terminology.
Are you saying you could have delta hedged in the After hours post announcement and locked in a profit??
So it did gap,but you chose to let it ride and it reversed ??
You lost me on over trading..you bought the guts/strangle and "overtraded"??
More to the point,trading vol,directionally or not is vastly different than punting on earning announcements.
There is a reason the "Canslim" crowd steps aside and lighten up pre earnings anouncement.
If...
Dawn,I think you know that your bet size on earnings was way way too big..
Nothing to do with vol.You were down 25 percent of your account the next day,on a synthetic strangle(what you call a gut play)??
Sounds like you bet 33 percent of your account on that one play..
i wouldnt jump to...
Says the broke ass mofo:)
Just out of curiousity,what would you do with millions if the tooth fairy got really stoned and left a major stash under your pillow??
Lol@ General Tao..I like it
All I said is Say Wut,and once again you have sent me on a wild goose chase:)
Im going to backtest different levels of IV rank..And FWIW,you probably arent far off...
You are off to a decent start by comparing Historical Vol to Current Implied..
Some pointed out that you should also be looking at what percentile implied vol is trading at,i.e where does current IV rank against past Implied vol...
Orats has "historical" rolling IV for different periods.30...