atticus' "ship it" vol trading journal

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Quote from cdcaveman:

1 to 4 pay out.. cheap bet on a beat.. and a bet against it not moving at all..

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Risking $1500 to make a little under $500. Is this usual?
 
Quote from justrading:

Risking $1500 to make a little under $500. Is this usual?

no i used to risk 10 to 30 thousand to make 1500 to 3000 dollars.. see i'm in recovery! haha...
 
Quote from cdcaveman:

no i used to risk 10 to 30 thousand to make 1500 to 3000 dollars.. see i'm in recovery! haha...

I take it that's a no.:)

Anyone know of any books that deal with risk management in options trading?
 
Quote from justrading:

I take it that's a no.:)

Anyone know of any books that deal with risk management in options trading?

yes... Options market making by Baird....
people will suggest Euan Sinclair,Sheldon Natenberg, maybe Augen maybe not haha.. Espen Haug.. taleb dynamic hedging.... james Bittman, Charles M. Cottle.. alot of Lawrence G. McMillan's stuff is basic..

all the books i've read start out with stuff that you have read in all the beginnings of all the other books.. delta,gamma,theta,etc etc..
more on time delta, and time vega.. and term structure risk is what i'm really interested in reading more about.. especially in futures.. and equities whatever..
 
Quote from cdcaveman:

anyone read this?
Fundamentals of Futures and Options Markets John C. Hull

When I first started working, my boss made read his other book: option futures and other derivatives, and do all the math problems in it. It was a good experience.
 
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