Destriero/Atticus Vol Journals.

[OptionsOptionsOptions]

He is the only reason and 2 or 3 other folks why you should visit this site.

• That's stretching it too far.
• I would say there is about 20 ET members who make visiting this site worth it.

 

[TheBigShort]

Wut?

Sure. A buddy of mine from Chicago did 800% in something under five years. He built the spreadsheets and (my) flies and cals are the basis of his system. I can't go into any detail on the excel setup/macros as it's his livelihood.

My IRA is at an ATH. I am in Florida until Tuesday afternoon, but post your questions here or PM. I'll be on the ocean with nothing but a radio and sat-SMS device so no internets.

No delta hedging in delta1 or volatility. Only D1 from inception. Say you're long x00 ATM flies (SPX 2700; SPX 2550/2600/2700 231; long ES futures). I/we never add delta1 or vol to hedge a running position.

Had a death in the family so the family is a bit fragile here. IOW, I have zero interest in battling anons, so if it goes sideways I'll just walk away.

Hey Des, I am not battling you at all. Infact I have read all of your journals and find them very insightful. Your strategy is very simple and I would like to create a similar strategy.

Some questions I have for you :
Why do you create flies directional and not have the short strike where you can sell the most Vega?
How do you come up with your stat vol forecast?
Where do you place your stops to exit the trade?
Thanks Des, have fun on the ocean

 

[OptionsOptionsOptions]

Why do you create flies directional and not have the short strike where you can sell the most Vega?

• 1-2-1 fly.
• Since maximum profit is at the short strikes that's where you place the "body" of the fly.
  
• ATM options will have higher premium - but if you think the underlying is going to move $20 after you enter the position you would place the "body" $20 OTM.

 

[TheBigShort]

• 1-2-1 fly.
• Since maximum profit is at the short strikes that's where you place the "body" of the fly.
  
• ATM options will have higher premium - but if you think the underlying is going to move $20 after you enter the position you would place the "body" $20 OTM.

But if you think the underlying will move then a butterfly is not the best strategy to deploy. He trades butterflies to short vol. That's his primary idea. Then I guess he throws a bit of direction on it. So maybe my questions should be where does he get his directional bias from??

 

[OptionsOptionsOptions]

But if you think the underlying will move then a butterfly is not the best strategy to deploy.

The trader would have to crunch the numbers first.

So maybe my questions should be where does he get his directional bias from??

For me it's momentum. All the stocks on my watch list are trending up.

 

[SumZero]

He popped back in yesterday so maybe he will answer directly...

Atticus and his other ET aliases started lots of butterfly threads over the years - all your questions should be answered in those threads.


PS ..... He even might answer this thread - I see he commented a few days ago on another thread.

Would someone care to share other alias for Atticus please ? The "original" atticus nick stopped in Jul 2013, as far as I can see.

Just if someone is not aware, he was also interviewed in the book Traders of the New Era.

 

[OptionsOptionsOptions]

Would someone care to share other alias for Atticus please ?

@atticus, @riskarb, @convexx, @destriero

 

[TheBigShort]

Would someone care to share other alias for Atticus please ? The "original" atticus nick stopped in Jul 2013, as far as I can see.

Just if someone is not aware, he was also interviewed in the book Traders of the New Era.

I was not aware. Which is the chapter on him?

 

[SumZero]

I was not aware. Which is the chapter on him?

Chapter 10: atticus - the options expert

 

[SumZero]

That is in the first edition of 2014 (the one I have). Sounds that an expanded edition was published in 2016. On that one he is in chapter 13.