How to trade volatility?

[destriero]

I thought he had $162 million portfolio at TDMA.

That’s the notional turnover. TDA calculates options with the multiplier; so 10000 is 100 lot. 162MM equates to 1.62MM in options turnover. Obviously shares as well. $162MM equates to shares and options, calculated on open and closing trades.

lol did he imply that he has a $162MM portfolio?

 

[srinir]

That’s the notional turnover. TDA calculates options with the multiplier; so 10000 is 100 lot. 162MM equates to 1.62MM in options turnover. Obviously shares as well. $162MM equates to shares and options, calculated on open and closing trades.

lol did he imply that he has a $162MM portfolio?

I swear, I saw something to that effect in his last night post that was quickly deleted.

 

[destriero]

I swear, I saw something to that effect in his last night post that was quickly deleted.

lol! It's total turnover; all open and closing trans; shares and options*100. My IRA at TDA is in the billions. Even my son's account is close to $70K even though he's only been trading a few weeks. I'll take a screenshot.

Adjusted cost. There is an adjusted proceeds as well. The diff is your PNL sans any open/existing positions. This is my oldest son's $28,000 account in which he's self-limited to $5,000 in risk. IOW, he's never carried debit-risk exceeding $5,000. It's a few weeks old.

lol $162MM.

 

[silver182]

lol! It's total turnover; all open and closing trans; shares and options*100. My IRA at TDA is in the billions. Even my son's account is close to $70K even though he's only been trading a few weeks. I'll take a screenshot.

Adjusted cost. There is an adjusted proceeds as well. The diff is your PNL sans any open/existing positions. This is my oldest son's $28,000 account in which he's self-limited to $5,000 in risk. IOW, he's never carried debit-risk exceeding $5,000. It's a few weeks old.

lol $162MM.


View attachment 191924

destriero..gets an A in comprehension 101..& B- Arbitrage 101..the others stringing this thread along need to repeat reading & comprehension grade school..

LOL destriero show us your capital gains to date 2018 screenshot only NO Bull sh*t from your TDA Gainskeeper...like I did...let us all see your billions in action & resulting cap-gain

 

[destriero]

destriero..gets an A in comprehension 101..& B- Arbitrage 101..the others stringing this thread along need to repeat reading & comprehension grade school..

LOL destriero show us your capital gains to date 2018 screenshot only NO Bull sh*t from your TDA Gainskeeper...like I did...let us all see your billions in action & resulting cap-gain

I will. I promise!

I will do so the moment that you tell ET, on this thread, the big difference between a naked put and a buy-write.

You can use Gainskeeper but I can't?

 

[destriero]

And FWIW, anyone that knows the answer to the following can request via PM my TDA IRA PNL to date:

What position is equivalent to long 100 shares and long one put?

a) a toaster

b) long call

c) Brett Kavanaugh

d) Herpes

9) all of the above

 

[mjf61]

Covered calls = writing puts.
Looks to me like you missed something in your classroom studies...try that on the street and you will discover a difference...a big difference...In the short time I've taken time to comment on this blog...I have discovered there are very few helpful, experienced, knowledgeable, people here...sad

You cvnt

 

[ssp729]

In theory, i can use the Volatility Risk Trigger (VRT) of https://thrasheranalytics.com/features
and when it happens, i buy VIX calls...

 

[IndyJonerJr]

You say you are a newbie..well if your account has some resource try my method, see if it works for you.

This is what I do...again, & again & again...I make money very consistently selling naked Puts...watch & trade only what's trending up when the trend is up. We are in one hell of a bull market but like markets do up's & down's are included!

Example you might try: tomorrow...sell APPL 217.50 puts.. expiration date 28th..."near" the money but below trading price! Use volatility to your advantage when selling. Option prices with APPL & SPY move quickly up & down in-tra-day.. and don't have wide spreads..don't use a Market order!..limit orders work to your advantage trading options...you would be surprised how often you can get a fill to your advantage...by placing an waiting a few minutes. I do this by selling a few units throughout the week. I would suggest you never sell any more units than you can cover..with cash!!..that way what you are trading takes a turn south getting close to Friday and you want to let the shares be Put to you. Next week should be better. You can also use this method trading SPY...it has 3 expiration days each week..be careful..start small & see how it works for you. I have found it's a cash cow...Especially the more margin value your account has.

See an upload screenshot of one of my accounts..I include this just to prove I am not bullsh*ting you..Ooops forgot to add when selling Put options using margin you pay NO interest I keep my margin balance at zero 95% of the time...I am borrowing money from the option buyer at no charge)

silver, how do you keep margin at near 0 if you keep cash to side to cover a exercise? wouldn't this factor in like a leverage of 5/1 or what I'm saying is bringing your margin down to 0 makes it that you over extended yourself not being able to cash cover the shares if the puts go ITM???

what happens in a bad scenario say apple drop 7-9% on week, and then you are at a loss say 8% because you went out 1 % on the puts.. how is your recovery system to handle that big of a loss?

if you do get exercised, what do you do then? pray and hope apple recovers the next week? what were your plays 2015 I believe when apple dropped 40-45% that year?

what advantage do you believe this has over cover call? or why do you use this system over covered call



very interested, as I don't play aggressive, or it's not my style or something I've never played with, happy to hear any input with your system that you seemed to fine tune to your style and habits

 

[silver182]

silver, how do you keep margin at near 0 if you keep cash to side to cover a exercise? wouldn't this factor in like a leverage of 5/1 or what I'm saying is bringing your margin down to 0 makes it that you over extended yourself not being able to cash cover the shares if the puts go ITM??? I do keep my margin balance in my trading accounts at zero most of the time. I don't like borrowing money...I borrow money from other market players free of interest, I like that. My margin limits and account holdings are such that being assigned has not been a problem the last few years. I've found just taking a loss is better than holding very long.


I do buy AAPL raw for every divided just for grins.. 3 or 4 thousand shares pays a dividend worth holding for a couple days. Actually, all of my accounts produce substantial dividends every month. Two of those accounts which also produce dividends, I use to trade every day...I enjoy trading.



what happens in a bad scenario say apple drop 7-9% on week, and then you are at a loss say 8% because you went out 1 % on the puts.. how is your recovery system to handle that big of a loss? Selling expiration dates father out has been working well the last few years and at times I write options that I wouldn't really want to cover. Time and the market has been good to me so covering has not been necessary very many times.



if you do get exercised, what do you do then? pray and hope apple recovers the next week? what were your plays 2015 I believe when apple dropped 40-45% that year?


2015...was a very bad year for me...trading GM & AAPL I lost over $100,000 dollars trading just those two companies. I hate losing money, but have learned to recover. If I get caught in a huge down turn & that has happened I suck it up..and recover. If you'll notice the last several years have been basically good for all of us..especially those with bullish mind sets.



what advantage do you believe this has over cover call? or why do you use this system over covered call "I have a bullish mind set", selling covered calls fits a bear market mind set....I just don't think that way.



very interested, as I don't play aggressive, or it's not my style or something I've never played with, happy to hear any input with your system that you seemed to fine tune to your style
I'll give you an example of my mind set.
AAPL took a little dip yesterday 9-26-2018 a big dip if you were holding Puts, depending how you entered the trade.
Per my "mind set" when implied volatility is high.. is the time to sell more Puts!
In fact just yesterday, I rolled out of 50 Sep. 28th 217.50's that I sold Tuesday this week @ 1.10 9am. Took approx 50% profit buying back @ .53 just after noon same day.
Next day 26th rolled forward to Oct. 5th 225.00's...Yes a big risk to be sure!
I've now got an almost 5.00 cushion on those 50 units.
I sold them @ 4.62. near market Close. After today up 43% closing @ 2.58.
It has taken time for me "to learn to do just the opposite" of what the market and other traders are doing.
I don't know what's going to happen tomorrow but 9-27 was a stellar day for this roll forward.
I probably should have purchased back just before close with the 43% profit..but I "believe" I have a buffer & hope time is on my side..we will see...very surprised today was this good for my roll forward given the Kavanaugh hearings...!

I find the market reacts to almost every political event these days.