My option trades

Charting your gamma is an exercise in futility.

What I stated was that premium and volatility are interchangeable. More so they are THE SAME. Gamma is the speed of the delta. What you're referring to is the delta. The distinction is significant to your trading because 1), gamma is not expressed in dollars so it will seem abstract, and 2), gamma convexity peaks ATM so that OTM options have less gearing to delta. There is further convexity to gamma that is +OTM, but it's complex and less an issue with vanillas than exotics.

You can have a gamma-limit in terms of a figure, but it will always be a moving target and can change modality on some positions. Don't bother with running a gamma-figure. Your theta is an implicit gamma exposure and it's in $-terms. Limit your greeks calcs to D, V, T.... dollar-terms.

IOW, you're running too much gamma if your $9,000 net liq account is running $200 daily thetas, regardless of sign.
 
...ryan, falconview, and forexforex, and others....

...we still have some interesting earnings yet this month next week...

ADBE
TIF
ORCL
NKE
GME
LULU
FDX

...any ideas?....
 
Charting gamma is an excercise in futility?

WOW! Arn´t these the experts telling me to do so? Must have been Don Bright?
Anyway it was interesting. Especially all the snide remarks I got in the past six months from others on here, because I did not understand or trade Greeks. Now I am beginning to understand, " it is an excercise in futility?" YIKES! All that aggravation or nothing?

I liked the Earnings Report list from traderlux. Not going to get sidetracked again though. But made note and will at least look at them periodically if Ryan trades them.

My yesterday trade is gaining 21% right now. Hope I can EXIT eventually and not lose too much. Back to the tried and true.

I am not at all sure, what language my friend ATTICUS is speaking? VANILLA and other stuff. I think of ice cream, being a retired beach bum, yachti and sometimes even a lowly ex- commercial fisherman. I appreciate his comments, but him being a trader Phd and all, I lack the vocabulary to even understand his mutterings. It´s like the house caretaker trying to understand Albert Einstein.:cool:
 
Quote from falconview:

Charting gamma is an excercise in futility?

WOW! Arn´t these the experts telling me to do so? Must have been Don Bright?
Anyway it was interesting. Especially all the snide remarks I got in the past six months from others on here, because I did not understand or trade Greeks. Now I am beginning to understand, " it is an excercise in futility?" YIKES! All that aggravation or nothing?

I liked the Earnings Report list from traderlux. Not going to get sidetracked again though. But made note and will at least look at them periodically if Ryan trades them.

My yesterday trade is gaining 21% right now. Hope I can EXIT eventually and not lose too much. Back to the tried and true.

I am not at all sure, what language my friend ATTICUS is speaking? VANILLA and other stuff. I think of ice cream, being a retired beach bum, yachti and sometimes even a lowly ex- commercial fisherman. I appreciate his comments, but him being a trader Phd and all, I lack the vocabulary to even understand his mutterings. It´s like the house caretaker trying to understand Albert Einstein.:cool:
More...

Watch your theta.
 
Well I´m back in the groove again. Trade yesterday exited today at 20% net gain.

I only traded one contract, and regret now I didn´t do 10 contracts. But needed the re-assurance from a win. Next week maybe I´ll do 5 contracts?

No more screwing around with things I don´t know anything about. Hope I can keep that resolution.
 
Quote from traderlux:

...ryan, falconview, and forexforex, and others....

...we still have some interesting earnings yet this month next week...

ADBE
TIF
ORCL
NKE
GME
LULU
FDX

...any ideas?....
More...

That's true traderlux, but this market puts everything in an odd situation.....all those you mentioned are either in a weak trend or all overbought. What to do here when they are already overbought? Take NKE for ex. straight up from $92 to $110, no 7-10% correction at all since December. What the heck can it do on earnings day. It's going to need some huge numbers just to continue, and I like NKE too and know it's going to beat estimates too. Just can't put money in that....I'm gearing myself more towards LULU and TIF, I like these specialty retailers. And FDX? Oil above $100, I don't know how that won't affect FDX going forward, but with a stronger economy, the comments from FDX on earnings is a wild card that will move it in either direction depending on what is said. ORCL, I want to set up a put, but again this market is resilient. Just won't go down, I took a loss on AAPL puts already, and I'm still trying to set up for another put position. AAPL's been oversold since January, and I know then end is coming soon. I've been waiting for a gap up on low volume, and hoping that today is it. But every earning trade this month is twice as risky as the earning trades back in Jan-Feb. At least then I knew the market had room to run higher.
 
CREE should work for you....I'm giving that AAPL put another try, made a small profit the first time around, but loss big on the second one, so I'm looking to make my money back. I bought 2 AAPL Mar 17 2012 $585 puts at 9.00. $568 to $595, then a drop off to $586, I think that was the top right there at $594.72. I set up stop at $5.50, so I'm taking no more than $700 loss this time around.
 
You must log in or register to reply here.
Back
Top