Limit up on the day?

.sigma

.sigma

@TheBigShort said this once


”I am having quite a great day. I went almost limit up on the day (close to largest gain I could have given the riski am taking). ill be posting fills closer to close today (was a bit busy this morning).“

Can someone explain this? Largest gain could of made given the risk? What does this mean? Limit up?

cheers
 
Robert Morse said:
Limit up in the futures market is when a future makes a large move up and the exchange wants to give Supply and demand an opportunity to equalize with less panic.
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but what is TBS implying by being limit up “for the day”? Is he saying this for his account or for the futures price?
 
You may want to ask him :)
But generally he trades options so my guess would be max profit for the day. In that case it could mean things like a butterfly where the underlying lands right in the middle, though not necessarily on the expiration day. Or it could be a sold straddle or strangle where again the underlying is right in between the sold legs and therefore at max profit, though not necessarily on the expiration day. So you could wait another day for additional profit, but just wouldn’t make much more money that particular day.
 
athlonmank8 said:
He's making up his own terminology. 99.99% of people use this term for futures prices. Not sure who he is, but he sounds like a moron using it in the context he did.
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He's quite good with trading, but I guess he adapted some foreign or learnt term to his own options setups :-)
 
I have never heard of the term limit up used to describe someone's gains. When the market is locked limit up there has been a glut of buyers, and in order for the market to keep some semblance of a price actually representative of the underlying market, the exchange locks limit up until equilibrium is reached. Ostensibly, limit up and limit down exist to prevent speculators from driving the price too high/too low during a panic relative to the underlying market. The limits are posted here.

You generally don't brag about getting caught in a limit up/down situation because typically you are holding in the direction of the limit lock and the only way to "break" the limit lock is if enough people on the other side come in to meet demand and move the price away from the daily limit. If the market sentiment is truly chaos and you're holding the right direction you can catch multiple days worth of limits, which might be good for your pocketbook provided you can get out (I can't remember the last time a market locked limit up/down).
 
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athlonmank8 said:
He's making up his own terminology. 99.99% of people use this term for futures prices. Not sure who he is, but he sounds like a moron using it in the context he did.
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@TheBigShort is the farthest from a moron and you should read his content on these forums and retract that statement homie.
 
Im pretty sure I was a few beers deep and extremely excited when I said that (as it was a really big day for me)! What I meant was given my risk parameter I was hitting the upper threshold on what I could have made for the day.

I was using defined risk trades (long flys), I usually calculate what my max profit can be on a fly after an earnings event. In that situation I was hitting close to the max profit on a few trades. Hope that answered your question

I have noticed you have been reading some of my older posts. Keep in mind I am a young quant without many years of experience (as others on this forum have). So read my stuff with a brick of salt.

p.s. If you have any questions for me, shoot me a DM. Im not frequenting this site as much as I used to but I will get back to your DM's when I visit
 
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