Testimonial on the site: "Awesome. Put over a grand in my pocket for presents for my kids."
LOL. That made my morning. Thanks for posting the link.
HowardCohodas Index Options Credit Spread Trading Journal
- Thread starter HowardCohodas
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Testimonial on the site: "Awesome. Put over a grand in my pocket for presents for my kids."
LOL. That made my morning. Thanks for posting the link.
ATTICUS
You made me feel like a baby with a diaper on full of poop and unable to do anything about it as I cry.
To me, that article was so deep I couldn´t even follow it. Other than in a general sense.
I don´t even know where to go to learn this stuff in a practical application manner. Putting different strategies together like that seems like a trip to the moon in my imagination.
New Post 03-07-11 02:21 PM
Quote from falconview:
Why trade a STRADDLE, or STRANGLE if you can predict direction, or alternatively cover your butt, if you turn out slow, or wrong by trading directional.
I don´t use stops. Not in orders anyway. A left over from 25 years ago, when I traded using a discount broker, and telephone system. In stocks getting a run on stops was par for the course. I learned to avoid them. I´ve been out of the markets for years and made money in other stuff. Now I´m old and bored and other things, so I´m playing now, with the vague goal of leaving a TRUST FUND with a meaningful amount of money.
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Many reasons that become apparent as you gain experience. Let's assume you're using stops (deep otm long wings) against the short straddle.
Say you're bearish on XYZ at 165, with a target of 160 in ten trading days. You can buy the 50/60/70 fly under two bucks with two weeks to expiration. A touch of 160 can return 5/1 in that time (at exp). 4/1 buying the calendar at a flat vol-surface or maybe 6/1 if vol rallies 500-600 bps. Better yet, buy the fly and calendar, and sell an index fly to trade the dispersion. You'll be long g/t/v and short correlation. You can trade the underlying pairs trade to reduce that risk as well.
Don't sell stops. It's many layers of stupid.
__________________________
I´ve printed your missive out. I am going to read it periodically and see if I can figure out what you said. Maybe even do it.
You made me feel like a baby with a diaper on full of poop and unable to do anything about it as I cry.
To me, that article was so deep I couldn´t even follow it. Other than in a general sense.
I don´t even know where to go to learn this stuff in a practical application manner. Putting different strategies together like that seems like a trip to the moon in my imagination.
New Post 03-07-11 02:21 PM
Quote from falconview:
Why trade a STRADDLE, or STRANGLE if you can predict direction, or alternatively cover your butt, if you turn out slow, or wrong by trading directional.
I don´t use stops. Not in orders anyway. A left over from 25 years ago, when I traded using a discount broker, and telephone system. In stocks getting a run on stops was par for the course. I learned to avoid them. I´ve been out of the markets for years and made money in other stuff. Now I´m old and bored and other things, so I´m playing now, with the vague goal of leaving a TRUST FUND with a meaningful amount of money.
_____________________
Many reasons that become apparent as you gain experience. Let's assume you're using stops (deep otm long wings) against the short straddle.
Say you're bearish on XYZ at 165, with a target of 160 in ten trading days. You can buy the 50/60/70 fly under two bucks with two weeks to expiration. A touch of 160 can return 5/1 in that time (at exp). 4/1 buying the calendar at a flat vol-surface or maybe 6/1 if vol rallies 500-600 bps. Better yet, buy the fly and calendar, and sell an index fly to trade the dispersion. You'll be long g/t/v and short correlation. You can trade the underlying pairs trade to reduce that risk as well.
Don't sell stops. It's many layers of stupid.
__________________________
I´ve printed your missive out. I am going to read it periodically and see if I can figure out what you said. Maybe even do it.
Quote from Wayne Gibbous:
I used to think it was marketsurfer doing his best VN spoof. But I'm not so sure. Surfy seems like a nice guy, but I don't think he has the writing chops to pull it off...
In any case, they are words to the wise about using a lot of leverage selling premium. Of course, here at ET they could be pearls before swine.
never know out here...i do find it a little hard to believe Victor Niederhoffer has renounced premium selling thus completely flipping a "decades" long strat.. maybe surf fine tuned his writing style
Howard Cohodas is on trade2win also:
http://www.trade2win.com/boards/t2w...as-his-associated-threads-treatment-them.html
This guy seems to be nothing but your typical Snake Oil Vendor scum spamming internet forums for business.
http://www.trade2win.com/boards/t2w...as-his-associated-threads-treatment-them.html
This guy seems to be nothing but your typical Snake Oil Vendor scum spamming internet forums for business.
I encourage everyone to read the entire thread and form their own opinion. Luckily yours is shared only by a vocal minority.
When the price of the underlying is know and it is over $100, it is common to just quote the last two digits of the fly in quick writing. For example with GOOG at $592 I could write about the 70/80/90 FLY and it is understood to mean the 570/580/590 FLY. Just short-hand really.
Atticus, Optioncoach, and Maverick know more about options than anybody on this site. If you're not listening to them you're looking a gift horse in the mouth. This Howard dude is akin to a 13 yr old who learned the three requisite rock chords on the guitar talking smack like he's Eric Clapton, George Benson, Carlos Santana et al.
+1
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