So this morning with the run-up ... we re-adjusted the Spread.
Sorta beautiful the way it's working out, as it allows us to demonstrate the principle, right away.
So I bought back that spread from yesterday (jumped the gun on it, and market properly bit my hand), taking the loss. It's already noted in the spreadsheet. And then re-sold a spread, higher strike up. Also already noted, in the spreadsheet. Sold the Nov 22 206 / 210 Call at 0.22
This part is important for the model ... we did not sell more of them ... nor at this point, were we going to go out farther in time. Thought about going out in time briefly, as that would be viable but didn't. We can keep that model to about flat at the moment. Which is intentional. Think it might be down about -10 BPS or somesuch like that.
Then on the opposite side of the coin? The long-flat is running higher and higher.
So not that they are offsetting each other as in they are in the same market (see below), although at the moment you see that overlay. But remember ... two different strategies. Which leads me to ...
Pop Quiz Still Stands: There are several ways to be "non-correlated". So what type of non-correlation is this? (Hint: It's the type of diversification most don't think about, mentioned in the opening white-paper). The answer to that, would lead you maybe how we will pick and choose our spots ...
As always, to see how we are doing on each process? Check out the tabs in the spreadsheet below. Thoughts, questions ... comments? Post 'em below!
_______________________________
Simple Longer-Term Hypothetical Non-Correlative Strategy Processes: https://www.elitetrader.com/et/thre...ournal-that-shows-profit.337303/#post-4951437
Spreadsheet: That keeps track of each trade, each process, and then everything together ...
IF YOU ARE ALREADY AN OPTIONS TRADER, Here is a Disclaimer: I know, I know, I know ... as well as a secondary ... I know ... I know ... I know
Sorta beautiful the way it's working out, as it allows us to demonstrate the principle, right away.
So I bought back that spread from yesterday (jumped the gun on it, and market properly bit my hand), taking the loss. It's already noted in the spreadsheet. And then re-sold a spread, higher strike up. Also already noted, in the spreadsheet. Sold the Nov 22 206 / 210 Call at 0.22
This part is important for the model ... we did not sell more of them ... nor at this point, were we going to go out farther in time. Thought about going out in time briefly, as that would be viable but didn't. We can keep that model to about flat at the moment. Which is intentional. Think it might be down about -10 BPS or somesuch like that.
Then on the opposite side of the coin? The long-flat is running higher and higher.
So not that they are offsetting each other as in they are in the same market (see below), although at the moment you see that overlay. But remember ... two different strategies. Which leads me to ...
Pop Quiz Still Stands: There are several ways to be "non-correlated". So what type of non-correlation is this? (Hint: It's the type of diversification most don't think about, mentioned in the opening white-paper). The answer to that, would lead you maybe how we will pick and choose our spots ...
As always, to see how we are doing on each process? Check out the tabs in the spreadsheet below. Thoughts, questions ... comments? Post 'em below!
_______________________________
Simple Longer-Term Hypothetical Non-Correlative Strategy Processes: https://www.elitetrader.com/et/thre...ournal-that-shows-profit.337303/#post-4951437
Spreadsheet: That keeps track of each trade, each process, and then everything together ...
IF YOU ARE ALREADY AN OPTIONS TRADER, Here is a Disclaimer: I know, I know, I know ... as well as a secondary ... I know ... I know ... I know
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