Negative Theta Options over Weekend

[cdowis]

BTW, I was not criticizing your system.

I was bored and hoping that you were not just a newbie fishing around for something.

 

[xflat2186]

Quote from BeatingtheSP500:

I doubt you have any grasp what my trading philosophy is. I'm not going to explain it in detail. If you think it's legging into a condor then that's what I'm doing then. The site is a public stating of my performance which can be proven in 1 minute to someone sitting across the desk interviewing me. What would be my motivation for creating numbers out of thin air? Instead of a 32% excess return over the SP500 over the past year why not 132% or 532%?
I apologize for using the term "personal hedge fund".

No offense but you have not indicated anything about what your system is other then you use calls and puts on the spy. I dont think anyone has asked for the details behind the system. The same can be said about your performance other then you use numbers to communicate it. By the way calls and puts are essentially the same thing, you can adjust your delta risk associated with them any number of ways. It comes down to long or short options and the associated riskes with eaither side of long or short any option.

No need to apologize for not realizing what a hedge fund is. One of the good things about ET is that aside form a lot of the anonymous bragging and noise people can actually learn things here.

 

[Eliot Hosewater]

Quote from atticus:

WTF is a personal hedge fund?

I think you are on to something. It could be the marketing breakthrough for the next 5 years or so.

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[BeatingtheSP500]

Quote from xflat2186:

No offense but you have not indicated anything about what your system is other then you use calls and puts on the spy. I dont think anyone has asked for the details behind the system. The same can be said about your performance other then you use numbers to communicate it. By the way calls and puts are essentially the same thing, you can adjust your delta risk associated with them any number of ways. It comes down to long or short options and the associated riskes with eaither side of long or short any option.

No need to apologize for not realizing what a hedge fund is. One of the good things about ET is that aside form a lot of the anonymous bragging and noise people can actually learn things here.

I did and do know what a hedge fund is, just happened to use it in a non-traditional sense.
Here's a little more of my daily trading:
Employing a double diagonal, with the added dimension of adjusting Delta (to tweak the overall fund's beta) corresponding with a contrarian position to market sentiment.

 

[xflat2186]

How is that a long only position?

 

[BeatingtheSP500]

Quote from xflat2186:

How is that a long only position?

It's not a strict double diagonal, but delta is tweaked to create a net long position, resulting in a beta that is always at least .75

 

[atticus]

Quote from BeatingtheSP500:

It's not a strict double diagonal, but delta is tweaked to create a net long position, resulting in a beta that is always at least .75

PLEASE stop using beta to define the risk on an option spread. You're bringing down the global IQ.

 

[BeatingtheSP500]

Quote from atticus:

PLEASE stop using beta to define the risk on an option spread. You're bringing down the global IQ.

I'm referring to the overall fund's beta position, not the specific option spread. Is that OK? I should have spelled it out.

 

[El OchoCinco]

No one cares about beta really, all that matters is whether you make money and how volatile your returns are. Using beta is akin to saying you beat the market when the S&P is down 20% and you are down only 10%.

 

[BeatingtheSP500]

It's good to know you speak for everyone else when you say no one cares about beta. I wasn't aware of that.
Someone stated a few times that I have given no indication of what my strategy is, but unfortunately my strategy involves examining beta of the entire fund.
Ciao.