Search results

You're right! The going-up-like-no-tomorrow wording was mere hyperbole to indicate exuberance in the market. Its was also stemmed from a rhetoric of frustration of recent failed hedges placed on Gold and Nat Gas. There's definitely infusion of new money coming into the market. Appears the money...

Looking forward to connect with other Options Traders.

The psychological barrier of 7000 was good to bring some NDX vol back. NDX and RUT appears to be the only hedgeable indexes. Everything else keep going up like no tomorrow. After the last FANG stock announces earnings is most likely when vol will start spiking. Today's 2-hour pull back, allowed...

Brother, thanks for this post! I read it over 10 times. Lot of us can learn from this. Most of traders are probably experiencing meteoric growth in their portfolio like you did in the Oct'2008. The irrational exuberance is in all of us. The number of bear and market crash news is vanishing. This...

Hmm, I don't know! A good trader needs to have be his own internal risk department!

In a past life I managed a bunch of high-power sales execs. They brought in multi-million dollar deals for the company. They could take a client problem and craft a complex solution (of half bull-shits and some software products the our company made) and get millions of dollars for it. Some of...

@Xela is correct, Mr. @SimpleMeLike What you do with the pattern is your strategy. I'm an options trader and always hedging to neutralize my deltas and risks. The same can be achieved with somebody shorting resistance and buying support, but has to watch for swings. As a trader, I just dont feel...

Just trade! Patterns will start appearing. Bet small and you may lose some money. The losers is what teaches you the most. Then you reverse the losers and make them winners. Will work for a few months and then they will stop working. Some examples of patterns that used to work. Crude oil has a...

Actually @tomorton is right! I went from a series of 20% annual return strateges to a 100 to 150% strategies with more attractive risk controls, after spending several hours on this forum back in May'17. Its up to you as a user to risk your capital and try them out and work out the kinks. I'm...

Gotcha! I read the "profitable" part as credit spread. This would be interesting to construct and see how the settlement prices moves along.

Trading gives tremendous level of liquidity that other mainstream businesses can't. I don't think I can unload 3 bobcats at the same ease as unloading 3 AMZN LEAPS. So in my head, the variables involved in the assessing the asset class are liquidity, scalability, stress and fun factor. Trading...

Fat-finger mistake. I meant OTM options. ITM wouldn't shock the VAR numbers on the risk metrics. Usually OTM show up as big exposure risk for +/- 30% change in underlying. Did they not model the 10yr bond to be shocked?

Why wouldn't the firms Risk metrics not flag such positions. If any deep ITM puts or calls were sold, wouldn't the VAR or exposure risks be immediately flagged in the books, let alone their margin cushion be eroded. How could any of these be hidden, especially after the 2009? I would blame Rock...

Its already beginning to look like that. The numbers are becoming meaningless. I just a have a weekly aim that I target and as long I meet that goal, I'm content. The puzzle part is definitely the most fun about this. Hedging between and against 3 or 4 instruments. Things that weren't...

Actually @sle is right. I Sorry, I wasn't referring to your not understanding risk/reward from a trading perspective. But realizing the mental anguish (health and pressure risk) of trading ones own capital especially when their trading capital is a significant portion of their net worth...

Hmm, savant? I doubt it. But, obsessive compulsive, yes! Unlike most people on this forum, I trade options full-time. I've been glued to the monitors since April of 2016. Fortunately, I didn't have the the distraction of a J-O-B. And my other businesses are based on rent-generating assets. So...

@lawrence-lugar, bro! You don't get a lot of love on here, do ya?

Its less about immunity and more about time-based diversification. How long you hold on to an asset is another way to spread your risk. There are advantages and disadvantages to this. You may have higher intraday margin cushion but with larger tax consequences. By carrying only a series of short...

Bob, You're a handsome looking fella, :) - m

Friend, I never said anything about these strategies working 100% of the time. They work for short periods of time. Most of my 100% strategies will work for 2-3 months and then they stop working. Then they will work in the opposite direction and if you can't manage, will obliterate your account...