Negative Theta Options over Weekend

Quote from atticus:

Nobody is this stupid. If so, you're more than a bit unique. The anti-Sidis.

You've pulled "1.1" out of your ass. You're asking for someone to play Jeopardy; solve for an equation that somehow arrives at 1.1. Only you, in your hydrocephalic-state and seemingly infinite-stupidity, would know how you arrived at the magical 1.1.

And no, 1.1 is not an unusual number for one's portfolio gamma. Here's a suggestion... find your VaR and STFU about beta.
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Atticus, you truly crack me up.

If you can't understand the beginnings of this trading strategy, well, ...I can't dumb it down any further. Any relevant message you are trying to get across gets lost in the vitriol. I don't have an advanced finance degree. The concept of my trading is pretty clear to me, I guess I just can't explain it to an Elite Trader. The fact that none of you can grasp even the beginnings of this strategy tells me I might be on to something. I really don't think I've said anything misleading and I'll take my book talk off forum. If you are misled, read it again.

And if you are just pulling my leg about having no idea what I am talking about, then the joke's on me.
Yes, SP500 +3200bps.
 
Quote from optioncoach:

Absolute returns can simply be compared to absolute returns of the index.

Since 8/14 Fund A is up 33% while during the same time period the S&P is down 10%. That is what fund managers and everyone in the industry uses for comparitive returns. Not sure why you want to dispute over this and use a different hypothetical method than what everyone else does. If you traded for a few years than simply calculate your annualized returns.

You have to realize that no one pays much attention to how you do over a defined period of time which leads to data mining. That is why people always ask for minimum of 3 years of track record to see some consistency.

So if you make 33% a year for 3 years in a row then you have a lot of reasons to feel proud. If you claim you did 33% versus the S&P500 for 10 months than I GUARANTEE everyone will tell you to call them in 3 years when you prove you can do it consistently.
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Fair enough. I know it will take time. I'm not expecting anything in the near future. Perhaps take a second every month a check on my progress. 1 year is not statistically significant. On the other hand I think the analysis could be sped up a bit due to the fact I've got 240 data points per year. It's on it's way to becoming statistically significant.
 
Quote from BeatingtheSP500:

Atticus Junior, err, I mean xflat, your silence is deafening.
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Oh I am sorry I was still waiting on you answering how you calculate market sentiment which people asked to hear 15 or more pages ago.

I see you changed your website to get rid of some of those inconsistencies, I guess that’s a good thing.
 
Quote from xflat2186:

Oh I am sorry I was still waiting on you answering how you calculate market sentiment which people asked to hear 15 or more pages ago.

I see you changed your website to get rid of some of those inconsistencies, I guess that’s a good thing.
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I still don't know what inconsistencies to which you refer. You found a few typos but what else was there?
Look, we couldn't get past the basic idea of "the Number" and I thoroughly confused everyone by stating relative returns. I just can't see my ideas on sentiment going anywhere.
 
Its not that one year is statistically insignificant its that absolutely zero substantiation of your record makes it insignificant.

I don’t need to defend Atti, even with my 20 years in the business and as well as I know options I would not be so inclined to imply that he needs you to dumb down a strategy. You simply have not given anything but a cursory indication of your strategy. You say you trade calls and puts on the SPY and sometimes use double diagonals and IC’s. Yet somehow to you it was significant that a particular put you bought yesterday was ½ the price of the previous day. That tidbit alone screams that you don’t understand options theory and pricing and why that puts price is what it is or the associated risks in options.

In closing to imply you’ve given enough information about your mystery system is silly in the context of building an options position. Simply saying you time the market with calls or puts is not a “system”. Given you didn’t have a grasp on the accepted risk parameters and their definitions, I would hardly go around saying others cant understand things.
 
Quote from BeatingtheSP500:

I just can't see my ideas on sentiment going anywhere.
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Thats the point people were making. You say its part of your method yet you cant define it. Most people in the industry would then classify that as a hunch or a guess or a gut feeling, and we all know those three along with wishing, hoping, prayer, and bullchitting are the most popular strategies on the internet.
 
Quote from BeatingtheSP500:

I still don't know what inconsistencies to which you refer. You found a few typos but what else was there?
Look, we couldn't get past the basic idea of "the Number" and I thoroughly confused everyone by stating relative returns. I just can't see my ideas on sentiment going anywhere.
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Just to be clear you have not confused anyone with your relative returns, we are just surprised you would use an approach so different than how the whole industry measures returns versus an index. I guarantee yuo there would have been no confusion if you followed the industry convetion of:

My portfolio has returned ____% since 8/14/07 while in the same period the SP500 has returned ____%. I bet you soup to nuts 100 industry professionals you might want to interview with would want it stated like this which is the real way to show performance.
 
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