A Trade
- Thread starter donnap
- Start date
Well that's it for now. I like the ratio spread now. I'm not that worried about the upside - except, you know how weird Fridays can get before a holiday. As a trader, I hate holidays.
So far, position ES ratio spread + 100s SPY and -2 SPY aug 2000C Can buy back the SPY calls at little risk. We'll see if they're still there at EOD. After today, I'll go to a journal, maybe.
I don't like the public posting, but I've got to admit it has its benefits. I did my best to post real time. The question is, how to do this without embarrassing yourself too much. The answers are there. Convexx's input was welcome and RR and nixodian PM, as well.
The lightbulbs are going on. I overtraded the hell out of this, as Rimes pointed out, it was cost inefficient. But I learned a lot about the SPX and related products. - at least the current environment.
Clearly, I'm comfortable on the downside now.
So far, position ES ratio spread + 100s SPY and -2 SPY aug 2000C Can buy back the SPY calls at little risk. We'll see if they're still there at EOD. After today, I'll go to a journal, maybe.
I don't like the public posting, but I've got to admit it has its benefits. I did my best to post real time. The question is, how to do this without embarrassing yourself too much. The answers are there. Convexx's input was welcome and RR and nixodian PM, as well.
The lightbulbs are going on. I overtraded the hell out of this, as Rimes pointed out, it was cost inefficient. But I learned a lot about the SPX and related products. - at least the current environment.
Clearly, I'm comfortable on the downside now.
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Ugh, not a pretty sight. Total costs 66.94. Total realized profits 105.50. The profits came from the SPY shares trades - which were decent. Didn't do well with the options. Add that to the 300 initial credit. The ratio spread is down about -10 pts. and the shares are down an additional 20 so approx - 520 unrealized loss. So still down a couple of hundred.
The 2 calls assigned so I'll be -100s SPY by Sunday at a cost basis of 200.33 + the ratio spread for the total position.
I'm tired of posting, so I'll sum it up here and go away.
The ratio spread is on the precipice of disaster. The old rule of thumb was bail on a 1x2 if the short options reach ATM. It's a little ironic since that is also max. time decay and the max. profit at expiry point.
So I'm still mulling over how to build size. Even 5x isn't that much, but I wouldn't go 5x with the call ratios; as is.
Since the position is bearish, I can sell puts or buy calls at a reasonably low risk. That's how I may start to build size. I can add call ratios along the way and fly out segments. Or I might attempt diag put ratio backspreads.
This may go against the skew, but time trumps vol. And getting direction right forgives all. I make no claims at being an option strategist. Directional trader is fine with me. Option tactician, perhaps.
If the market drops soon, you can be sure I'm making money. This market may have plenty of pops left in it so we'll see. I believe that we have two overnights before the open on Tues. Those can be interesting. Depending on what I see, I may continue to defend the upside, but I think that the time for that is over.
If the market continues its rise well above 2000, I be toast. The expiry BE point on the ratio spread is around 2015. That'd be an area where I'd consider throwing in the towel. Or if I build size, I might use a 5K dollar stop.
BTW, I started using dollar stops several years ago, after a miserable 20K dd in one month. Made it back in three months, though. There is no emoticon to describe the elation of not making any money for 4 months. Maybe
The 2 calls assigned so I'll be -100s SPY by Sunday at a cost basis of 200.33 + the ratio spread for the total position.
I'm tired of posting, so I'll sum it up here and go away.
The ratio spread is on the precipice of disaster. The old rule of thumb was bail on a 1x2 if the short options reach ATM. It's a little ironic since that is also max. time decay and the max. profit at expiry point.
So I'm still mulling over how to build size. Even 5x isn't that much, but I wouldn't go 5x with the call ratios; as is.
Since the position is bearish, I can sell puts or buy calls at a reasonably low risk. That's how I may start to build size. I can add call ratios along the way and fly out segments. Or I might attempt diag put ratio backspreads.
This may go against the skew, but time trumps vol. And getting direction right forgives all. I make no claims at being an option strategist. Directional trader is fine with me. Option tactician, perhaps.
If the market drops soon, you can be sure I'm making money. This market may have plenty of pops left in it so we'll see. I believe that we have two overnights before the open on Tues. Those can be interesting. Depending on what I see, I may continue to defend the upside, but I think that the time for that is over.
If the market continues its rise well above 2000, I be toast. The expiry BE point on the ratio spread is around 2015. That'd be an area where I'd consider throwing in the towel. Or if I build size, I might use a 5K dollar stop.
BTW, I started using dollar stops several years ago, after a miserable 20K dd in one month. Made it back in three months, though. There is no emoticon to describe the elation of not making any money for 4 months. Maybe