dest's overwrite journal

rts232 · Sep 7, 2021

des, do you play anything at all in fops/futures on commodities?

destriero · Sep 7, 2021

rts232 said:
des, do you play anything at all in fops/futures on commodities?

Nothing really outside of oil.

rts232 · Sep 7, 2021

destriero said:
Nothing really outside of oil.

Do you play CL or other flavors, too? By FOPs exclusively or futures, too? What time frames?

destriero · Sep 7, 2021

rts232 said:
Do you play CL or other flavors, too? By FOPs exclusively or futures, too? What time frames?

I don't get into the crack/switches, but trade the futures and options on CL.

KCalhoun · Sep 7, 2021

Many of the world's top traders trade options, I should learn how.

SPX Options Trader · Sep 7, 2021

KCalhoun said:
Many of the world's top traders trade options

I should learn

Switching from trading stocks...to options....will make you go from (just) Calhoun....to... Caaaaaaaaal-- -Hooooooooun,
One is TNT, while the other can be plutonium. A profound difference in charges and effects and workings.

But, of course,...the Devil is in the details, understanding, layout and execution of each, and every, options trade.
Everything, in life, can be a double-edged sword.

destriero · Sep 7, 2021

NoahA said:
Out of curiosity, how would you summarize this trade?

You said you were heavy short at 610 on Tuesday evening. I assume this means with large size. Then you said you were prepared to add at 652, which is 40 points higher, and it did get there. It got as high as almost 15700, so 90 points against your initial entry. You got out on Thursday evening (at least that is when you mentioned it) for only 20 points. It was much lower before the close on Thursday, but it seems like you were still in the trade at that time.

Anyway, so I'm just trying to figure out how you categorize this trade. Was it a dud?

When you added to the short, is this because you still believed in "tech trigger" that you use, or were you just "fixing" a trade going against you?

Lastly, did you not exit when you had a much better profit because the aforementioned "tech trigger" wasn't flat yet? The initial entry went 90 points against you and you only took 20 points on I assume the average price, so I wonder what your thoughts about this trade are. Thanks.

I was leaning long delta (short vol) in vol and while it was a small gain, but my vol came in a lot. I can't second guess the entry just bc the thing ran against me and I could have covered a bit better. The goal is to be short vol when the signal is bullish and long vol when bearish.

Hard deltas against vol when I am wrong but too big to get out. Verts or singles as hedges at inception. I should have structured some DOTM bear verticals against my vol, but I didn't like buying the vol-line into the weekend knowing we'd print small ranges into the holiday and after.

I will use futures to trade around a large vol-edge or contracts (000s) if microstructure (getting out of size) would result in a stupid edge loss. IOW, if I am short vol and my trigger gets short, but the position remains viable, then I will get aggressive in NQ futures.

NoahA · Sep 7, 2021

destriero said:
I was leaning long delta (short vol) in vol and while it was a small gain, but my vol came in a lot. I can't second guess the entry just bc the thing ran against me and I could have covered a bit better. The goal is to be short vol when the signal is bullish and long vol when bearish.

Hard deltas against vol when I am wrong but too big to get out. Verts or singles as hedges at inception. I should have structured some DOTM bear verticals against my vol, but I didn't like buying the vol-line into the weekend knowing we'd print small ranges into the holiday and after.

I will use futures to trade around a large vol-edge or contracts (000s) if microstructure (getting out of size) would result in a stupid edge loss. IOW, if I am short vol and my trigger gets short, but the position remains viable, then I will get aggressive in NQ futures.

Thanks for the thorough explanation. Unfortunately, volatility trading is above my current scope of expertise. But I do appreciate it nevertheless and perhaps one day I will understand some of what you volatility traders do. (Taking directional trades with comprehensive trade management is the road I'm on.)

KCalhoun · Sep 8, 2021

destriero said:
I am long REGN and short SPX. $risk is roughly equal.

Thx re bear nudge short SPX Saturday, I went a bit more aggro UVXY TZA day and swings and having a green week

#thxdest

Here's my et follow list

vanzandt · Sep 9, 2021

destriero said:
Out of short NQ. My tech trigger went flat. Up 20 on initial and add (all in).

$AFRM reports tonight.
vol crush I bet.
idea...
Sell the $90 puts/calls.
$12.50 credit.
Maybe buy a $105 call on the upside for insurance in case the market gets stupid, but I think if it does anything it'll drop. $80 put is $2, probably get it cheaper if this thing starts climbing into the close.