Long-scalping equity options against time decay and market drift

[spy]

dude, you're just fulfilling every checkpoint that they're claiming against you. this feigned arrogance is tiresome and easily observed by anyone with an IQ north of 100. you have nothing. if you had something you sure as f*ck wouldn't be soliciting to manage for others. you'd keep it all to yourself. spare us all the altruism.

With this out of the way, let's address the real elephant in the room...

I think it should be lucy's ellipse, no? I mean, Charlie Brown has a leg and could send the ball sailing if only Lucy would let him make contact once in a while.

 

[destriero]

The leg inflicting the largest loss is this one, with around -40K (and we have other 2 of those losing legs):

View attachment 300668

ES FOP 20230818 4000 P CME 50 E-mini S&P 500 [EW3Q3 P4000, 574680266, mult: 50]

Could we have avoided it? Yes but in that case, we would rely only on the long scalping activity of the automated layers, in order to hedge, like for instance shown here:

View attachment 300669

Transfer: ES FOP 20220531 2400 P GLOBEX 50 → ES FOP 20220826 2750 P GLOBEX 50
Transfer: ES FOP 20220826 2750 P GLOBEX 50 → ES FOP 20220916 2870 P GLOBEX 50
Transfer: ES FOP 20220916 2870 P GLOBEX 50 → ES FOP 20221114 2800 P GLOBEX 50
Transfer: ES FOP 20221114 2800 P GLOBEX 50 → ES FOP 20221230 2600 P GLOBEX 50
Transfer: ES FOP 20221230 2600 P CME 50 → ES FOP 20230120 2800 P CME 50

I much prefer this folio configuration, because most of the time we end up "eating the protection" too, as often we can turn it into a profit. We will see ...

Note that we started this trading session without any "protective structure", but only relied on long scalping. This is the period of the war news that has caused a 5% DD.

Certainly not so bad, considering we had only naked shorts. But in that case, the "protection" would have spared a lot of it.

Serious question. You're short a ton of puts. Where is the protection? What war news? Today was a BTE nonfarm number. US mkt was flat before the NFP and rallied into the close.

War news and you're indiscriminately short puts? Are you short futures anywhere in this sim-account? At least you would be in a crazy synthetic straddle/overwrite structure, but I don't see anything but a Texas-hedge.

 

[spy]

Where is the protection?

If you don't have any real money you don't need protection.

 

[fullautotrading]

If you don't have any real money you don't need protection.

Do not protect yourself, then!

We are doing serious stuff here. If you come only to disturb the readers, you are quite unpolite.

 

[spy]

We are doing serious stuff here.

@fullautotrading is going to rely on the old robinhood buying power flaw where every time you sold an option your buying power went up because you collected the premium.

 

[destriero]

Do not protect yourself, then!

We are doing serious stuff here. If you come only to disturb the readers, you are quite unpolite.

Protect yourself with SHORT PUTS?

 

[destriero]

Do not protect yourself, then!

We are doing serious stuff here. If you come only to disturb the readers, you are quite unpolite.

Impolite.

 

[fullautotrading]

Serious question. You're short a ton of puts. Where is the protection? What war news? Today was a BTE nonfarm number. US mkt was flat before the NFP and rallied into the close.

War news and you're indiscriminately short puts? Are you short futures anywhere in this sim-account? At least you would be in a crazy synthetic straddle/overwrite structure, but I don't see anything but a Texas-hedge.

View attachment 300675

If you had read the thread more attentively - instead of coming here only with the purpose to be of disturbance and attempting to defame someone who dared not to magnificate enough about your self-aggrandizing narcissist personality - you would have known, by now, that I have defined 3 protective structures so far.

The "long legs" are the "currently losing" options. (The long red columns in the folio chart.)


PS. There is no need to switch accounts: I know it's you.

 

[fullautotrading]

Impolite.

Well, thanks for the alternate spelling, at least we are making progress here

 

[destriero]

You're in a 245 x 17 overwrite. That's insane. A 17 x 245 short backspread.

I stopped looking at the sign of the vol bc all I saw was shorts. I assumed (incorrectly) that you were rebalancing in R/T with futures. Unless I missed it you're short 245 tiny puts against 17 long.
Unreal.