For Directional traders

Quote from MoralHazard:

So your style is "market neutral," and you try to earn more than Treasuries by astutely picking longs and shorts?
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If I was playing market neutral as you infer, I would be an option seller not an option buyer.

Wake up buddy.....
 
Quote from optionpro007:

If I was playing market neutral as you infer, I would be an option seller not an option buyer.

Wake up buddy.....
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Oh, pardon me. I'll wake up. So what's the beta of a long put?
 
Quote from optionpro007:

You obviously didn't.
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I am genuinely interested in your approach to risk control.

Being long a put means you are short the underlying, so it is not inconceivable that your portfolio is relatively close to being market neutral (You don't need to sell options). That's not an epithet, I know several outfits that are doing quite well with this strategy.
 
you know that some people win the jackpot when they play slots, and most of the time, they will have an up month that month?
 
Quote from srolle:

you know that some people win the jackpot when they play slots, and most of the time, they will have an up month that month?
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Please save all that intelligence to yourself. Why wasted in this board ?
 
Quote from MoralHazard:

I am genuinely interested in your approach to risk control.

Being long a put means you are short the underlying, so it is not inconceivable that your portfolio is relatively close to being market neutral (You don't need to sell options). That's not an epithet, I know several outfits that are doing quite well with this strategy.
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I must stress the point, "in theory" if I want to have all my capital working for me all the time and want the least amount of risk possible and I only trade options, the only way to achieve this is how I mentioned earlier in this thread.

Is it perfect ? Of course not.

What I am looking for is to avert a mayor drawdown or plain wipeout in case something terrible or very good
happened in the markets.

In my opinion this gives me the opportunity to be fully invested
without the risk that either long term equity holders or option sellers have every minute they participate in the market.

Again, this is only theory.

Good luck to you !!
 
Quote from optionpro007:

I must stress the point, "in theory" if I want to have all my capital working for me all the time and want the least amount of risk possible and I only trade options, the only way to achieve this is how I mentioned earlier in this thread.

Is it perfect ? Of course not.

What I am looking for is to avert a mayor drawdown or plain wipeout in case something terrible or very good
happened in the markets.

In my opinion this gives me the opportunity to be fully invested
without the risk that either long term equity holders or option sellers have every minute they participate in the market.

Again, this is only theory.

Good luck to you !!
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Ok, thanks - and that's also a very sensible approach. Good luck to you too.
 
mini-update 8/12/05:

closed KSS-put position. threw in the white towel...

KSS Jan 50 puts - lost $630. had to give up on this. markets are down big and this thing is up, even with a weak profit forecast for 3rd quarter. too many shorts covering? dunno...

there's better opportunities out there.
 
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