My option trades
- Thread starter ryanpatrick
- Start date
Stops and Profit Levels are equal on 88% of the signals (the standard workhorse signals) and are based on the VIX.
1: When the VIX is < 20% standard signal profit and stop is +30%/-30% on the first 6 consecutive signals in the same direction and then drop to 25% thereafter. R/R has to remain equal on both sides so adjustments are made when Buy No. 2 is needed to equalize R/R.
2: When the VIX is > 20% standard signal profit and stop is +40%/-40% on the first 6 consecutive signals in the same direction and then drop to 30% thereafter. R/R has to remain equal on both sides so adjustments are made when Buy No. 2 is needed to equalize R/R.
3: The is only minor changes to the profit goal and stops
on a few exceptional signals that create a little additional profit,
but the signals are too few to mention the differences.
In my opinion anyone who doesn't adjust there entries, profits and stops based on the current VIX, is also the same trader who says,
"my system was working fine and then it stopped working and I don't know why?"
"The VIX is the personality of the market and it has many faces."
Don't you have a link to my post? You have a bad habit of hijacking popular threads to capture an audience for yourself, what a loser.
OOoooh mon! 2.44 a.m. here. Woke up, but looking at the Bear Call Spread leaves my mind a muddle. I need to buy some rum, or something.
Let me assume, I buy a straddle. The index moves in one or other of the directions.
By selling the premiums of the side that it moved away from, you create a Bear spread. It says you make a profit doing this? Trying to visualize this.
You have the long straddle, or strangle. The other side is just sitting there. I presume this ensuing Bear Call spread is LOCKING IN A PROFIT on one side of the LONG STRADDLE?
You start by buying a STRADDLE in 90 day out options. You are not going to expiration. Just trying to capture volatility and premium ballooning, or maybe deflating, from market flutter. In a month, or even a week, or two, you are going to get some movement, enough to make the Long Straddle on it´s own, make a little bit of money. 3% anyway. Which normally you could close and take. But this amount is too little for the time invested. So you LOCK IN YOUR PROFIT ( not clear on this part yet ) by turning the losing side of the straddle by SELLING against it, turning it into a Bear spread. CALLS or PUTS.
Let me look see if I can find a LONG STRADDLE CALCULATOR. Or I just will have to do this by paper trading. I need to confirm that you do LOCK IN A PROFIT here, by turning it into a Bear spread. But when do you close everything down?
The intention is to use the normal fluctuations of a straddle to lock in some profit, though I´m not at all sure when you would close it out? Probably take two weeks to do? But what kind of return would you get?
Let me assume, I buy a straddle. The index moves in one or other of the directions.
By selling the premiums of the side that it moved away from, you create a Bear spread. It says you make a profit doing this? Trying to visualize this.
You have the long straddle, or strangle. The other side is just sitting there. I presume this ensuing Bear Call spread is LOCKING IN A PROFIT on one side of the LONG STRADDLE?
You start by buying a STRADDLE in 90 day out options. You are not going to expiration. Just trying to capture volatility and premium ballooning, or maybe deflating, from market flutter. In a month, or even a week, or two, you are going to get some movement, enough to make the Long Straddle on it´s own, make a little bit of money. 3% anyway. Which normally you could close and take. But this amount is too little for the time invested. So you LOCK IN YOUR PROFIT ( not clear on this part yet ) by turning the losing side of the straddle by SELLING against it, turning it into a Bear spread. CALLS or PUTS.
Let me look see if I can find a LONG STRADDLE CALCULATOR. Or I just will have to do this by paper trading. I need to confirm that you do LOCK IN A PROFIT here, by turning it into a Bear spread. But when do you close everything down?
The intention is to use the normal fluctuations of a straddle to lock in some profit, though I´m not at all sure when you would close it out? Probably take two weeks to do? But what kind of return would you get?
http://www.elitetrader.com/vb/showt...=218780&perpage=6&highlight=goog&pagenumber=1
Here's the link. Wanna respond or are you going to ignore the subject like you have done every other time?
If you had just fessed up the first time everyone wouldn't have cared so much. Instead you had to be a douche about it.
The problem with your system from what I can tell is that you are fundamentally calling the market for 2 or 3 day stints and you monetize the view through long calls or puts. You are right everytime. If you're calls were infrequent (like 3x/year) this might be plausible, but not when your calls are every 2 or 3 days. No one gets 50 wins in a row regardless of the risk/reward ratio.
Spend a lot of time trying to figure out why you got so many right. Stops, risk reward ratio, sizing, etc are irrelevant if you get every call right.
I'm beginning to think you've already had that rum, or are running on lack of sleep, because you aren't seeming to hear what I''m saying.
I am not buying options, I am selling them. I am not buying straddles, I am selling strangles.
I think I'm going to bow out of this conversation politely as I feel as though I'm wasting my time and yours, for you either don't want to "get it" or aren't taking the time to.
I do wish you the best with your trading, however you wish to go about it.
I am not buying options, I am selling them. I am not buying straddles, I am selling strangles.
I think I'm going to bow out of this conversation politely as I feel as though I'm wasting my time and yours, for you either don't want to "get it" or aren't taking the time to.
I do wish you the best with your trading, however you wish to go about it.
A bear call spread makes money if stock goes down. Bull when goes up, not much reading to do here Mr. Falcon.
Don
Falcon, Dreamliner is suggesting you realize the loss on short put side of the straddle and roll-down on strikes (new put short), and buy an OTM call that results in a bear call spread on the upside. The trade caps upside risk and will do ok if the market mean-reverts.
So the result is a realized loss on the naked put, a new naked put short at a lower strike, and a bear call spread.
The call spread will be doing fine, but at the expense of the realized loss on the put. You have zero hedge if the mkt continues to drop. It's a bull-strategy.
I don't get the point, but I am sure it's really awesome!
So the result is a realized loss on the naked put, a new naked put short at a lower strike, and a bear call spread.
The call spread will be doing fine, but at the expense of the realized loss on the put. You have zero hedge if the mkt continues to drop. It's a bull-strategy.
I don't get the point, but I am sure it's really awesome!
Don and Atticus
Ha! Ha! Ha! With friends and mentors like you guys, it´s better than using the old paint can on a rope in the morning and dousing yourself a shower over the head, with cold water from the shallow island well. About the same feeling.
I just looked at Tuesday Earnings report paper trades. This being Wednesday morning. JEF lost a smidgen. 5 cents.
OMN shocked the devil out of me. Must have been after the CLOSE report or something. Shot up from $1.05 to $1.90 this morning on the OPEN. There is method in Ryan´s madness after all.
Will have to cogitate on that a bit. Its telling me something, but don´t know how to handle it.
No earning for Wednesday
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Okay on that BEAR CALL trade being directional down. I´m just trying to make sense of it. Or to use it. Let me see, put my failing memory cap on, think we were talking about SELLING a strangle or straddle? The buying of the CALLS would have locked in the profit maybe? Turning it into a Bear Spread. Whatever you sold it for originally would be locked in? You are still directional. If the direction continued you would WHAT? The PUTS would be losing value? Aaargh! I can´t think too much about that. My brains start smoking.
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Been thinking about the LONG STRADDLE/STRANGLE.
I like that trade. it doesn´t pay very much, and it takes far too long invested. But if you buy 3 rd month options, 90 days, you are looking for eventual movement and volatility. I know from experience it will eventually pay off something. Time decay doesn´t seem to bother it, in the short term, say two weeks.
So my thought is, HOW COULD YOU ZIP UP THE RETURNS? What kind of bells and whistles on it, could you use? It is a worry free trade normally. I was looking it up, you could Sell the profitable side. Buy back and renew the STRADDLE/STRANGLE, sold side, with a limit order 10 cents cheaper to get you back to where you started, taking care of the bid/ask and commissions costs. There must be other options, now we are discussing various spread creations to throw in the mix here. Since you were long, you could do a wide credit spread, or something else???
Suggestions anyone?
Ha! Ha! Ha! With friends and mentors like you guys, it´s better than using the old paint can on a rope in the morning and dousing yourself a shower over the head, with cold water from the shallow island well. About the same feeling.
I just looked at Tuesday Earnings report paper trades. This being Wednesday morning. JEF lost a smidgen. 5 cents.
OMN shocked the devil out of me. Must have been after the CLOSE report or something. Shot up from $1.05 to $1.90 this morning on the OPEN. There is method in Ryan´s madness after all.
Will have to cogitate on that a bit. Its telling me something, but don´t know how to handle it.
No earning for Wednesday
_____________________________
Okay on that BEAR CALL trade being directional down. I´m just trying to make sense of it. Or to use it. Let me see, put my failing memory cap on, think we were talking about SELLING a strangle or straddle? The buying of the CALLS would have locked in the profit maybe? Turning it into a Bear Spread. Whatever you sold it for originally would be locked in? You are still directional. If the direction continued you would WHAT? The PUTS would be losing value? Aaargh! I can´t think too much about that. My brains start smoking.
_____________________________
Been thinking about the LONG STRADDLE/STRANGLE.
I like that trade. it doesn´t pay very much, and it takes far too long invested. But if you buy 3 rd month options, 90 days, you are looking for eventual movement and volatility. I know from experience it will eventually pay off something. Time decay doesn´t seem to bother it, in the short term, say two weeks.
So my thought is, HOW COULD YOU ZIP UP THE RETURNS? What kind of bells and whistles on it, could you use? It is a worry free trade normally. I was looking it up, you could Sell the profitable side. Buy back and renew the STRADDLE/STRANGLE, sold side, with a limit order 10 cents cheaper to get you back to where you started, taking care of the bid/ask and commissions costs. There must be other options, now we are discussing various spread creations to throw in the mix here. Since you were long, you could do a wide credit spread, or something else???
Suggestions anyone?