HowardCohodas Index Options Credit Spread Trading Journal
- Thread starter HowardCohodas
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I hate to repeat myself, but in your case I'll make an exception.
Do some reading. I wont do your homework for you. If you disagree with any of my innovations, let's discuss.
Seriously, I'll go through the thread again to find the innovations and get back to you on that. IMO, what's missing in all the credit spread/iron condor sites on the web and how you could really add value : the underlying.
It's never mentioned, because I guess using spot to hedge risks in condors complicates risk/reward, entry/exit and probably scares people who lost trading directional before moving on to options and 'neutral' strategies. But that's the best way mixture of the two for me, selling ATM and trading around it in spot (maybe not so in equities but certainly in round the clock index futs/currencies.) If someone could help people with strats that sell ATM spreads (condors, flies, whatever) and trading around it to assist your deltas, that would be innovative. But I damn sure wouldn't do it because I'm up at ungodly hours hedging, so I wouldn't expect a paying customer base to do so.
Quote from falconview:
Awwww guys! Leave it alone. I'm an amateur and I understand Howard is an amateur too. As far as selling stuff, the internet is FULL of people selling shoddy stuff on credit spreads, or OEX trading systems. Some of them have been around 40 years that I remember. Their methods no better today than they were 40 years ago. ( No names mentioned )
You pick up stuff as you go along. Howard will pick it up.
I tell you as a man who is familiar with gold mines in Bolivia and other places, there is no better sucker than a lawyer, an engineer, a medical doctor who thinks his smarts, will let him play the markets and do well. Very few do and they usually learn a simple trick to it and just keep repeating the one trick over and over again. Only the doctors, lawyers and engineers do not realize the game is not about mathematics, but about phsycoology and playing against the mob, which is forever adapting.
See, I can't even spell right and I'm in the market and must therefore have an advantage over an engineer.
You've already discarded this strategy, so you've already got a leg up.
"Easy to price, hard to hedge" (Derman). It applies as well to European binaries as it does to these moronic verticals (equivalent short strike).
Any discrete hedge will become whipsawed to death. Any spot hedge substantial enough to cover the risk to the wing-strike will become the primary risk. Anyone who has traded options more than a few months would know this.
It's why pros don't sell garbage/teenies.
Was wondering who in their right mind will spend 3 pages arguing about the moral ethics of linking a picture on the inter web. So i googled howard cohodas and it turns out howard is quite old.
So this is kind interesting, you have a 70(?) yearold just starting to learn about option trading, and like all beginners once (myself included), the first trades are always on the sell side for the instant gratification of "pocketing" those premiums.
I think we should let howard do his thing (sell otm ics), dont think he will change his mind unless there is a blowup. Nothing makes you rethink your plan faster than watching your "stable" positions that has been held for weeks turn into a wipe within days even hours.
So this is kind interesting, you have a 70(?) yearold just starting to learn about option trading, and like all beginners once (myself included), the first trades are always on the sell side for the instant gratification of "pocketing" those premiums.
I think we should let howard do his thing (sell otm ics), dont think he will change his mind unless there is a blowup. Nothing makes you rethink your plan faster than watching your "stable" positions that has been held for weeks turn into a wipe within days even hours.
How did you estimate my age? :eek:
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As predicted by many here, the increase in volatility this week hurt my account.
But wait... It is still the best month on month return I've ever had with real money trading. Go figure.
I may be a relative beginner, but I began my journey with credit spreads about 8 years ago. And I've been an investor for over 40 years. Some of it managed by others, some of it managed by myself. That only characterizes my background, it does not speak to my expertise in trading vertical spreads.
For all you brilliant pundits who speak with such authority on my methods, perhaps you missed that my trading unit is the credit spread and not the Iron Condor. I leave it as an exercise to the reader to understand how Iron Condors enter the picture with respect to my methods.
And so it goes.
Let not your expectations be overly influenced by the results of paper trading. I did about 150% better in paper trading than I have done with real money trading.Quote from falconview:
HOWARD
( grin ) I'm catching up to you mon! Up to 96% ROI EEEFFF I get one more trade before the end of the month, will catch you up mon in only 3 months of trading.FUNNY MONEY!
I hope you can do better. Be warned... hubris is a terrible companion. Been there and done that.
Howard
That is what I´m afraid of. The difference between FILLS in real money and funny money, when I go cash. So will start small.
KEDWARDS
Inrigued me. Stupid amatuer like me would like to know what spot means? Spotting to hedge the deltas I sort of understand. Though not how to do it.
Do you make a higher return in doing so? Less losses?
That is what I´m afraid of. The difference between FILLS in real money and funny money, when I go cash. So will start small.
KEDWARDS
Inrigued me. Stupid amatuer like me would like to know what spot means? Spotting to hedge the deltas I sort of understand. Though not how to do it.
Do you make a higher return in doing so? Less losses?
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