market down and there are too many

M

mikeenday

Guest
positions open in my account.

puts: GS, MRVL, F, JKS, RIMM, LVS, MGM..

it looks like a mess, how are the professionals manage their positions? and is there a rule associated with it?
 
Quote from mikeenday:

positions open in my account.

puts: GS, MRVL, F, JKS, RIMM, LVS, MGM..

it looks like a mess, how are the professionals manage their positions? and is there a rule associated with it?
More...

Our platforms have some type of risk manager. On one "page" you can view your Greeks per position and see totals. This is very common.
 
Doesnt sound like very many positoins to me. I don't really like sell stops on options because I never want to hit the bid if the spread is wide, so I just put alerts in on the stock prices.

So if XYZ stock trades above $X.XX you get a text message and know to open up a chart and make a decision.

I think 20 combos should be managable. If your just doing long puts, then your basically just short stock (-delta, -theta) and managing 10 shorts can be real challenging.

If that's the case you probably need to upgrade your hardware / software to watch 10 positions simultaneosly. If you want to close 10 positions in 10 seconds, I have two words for you: "sell market".
 
+1 to what kztrading said re getting an alert if the ul reaches a certain price.

if trading that many (that's not a lot) individual stocks is too much just trade industry/sector/market etf's. less stock specific risk and usually cleaner patterns.
 
You must log in or register to reply here.
Back
Top