Negative Theta Options over Weekend
- Thread starter TraderGreg
- Start date
We donât actually know what your performance is. We know what number you post here but hundreds of people post that kind of stuff here, oh and they're all rich and good looking too. Did you ever wonder why more Ferrari's are owned by people on stock market boards then Ferrari's ever produced? Where do the extra cars come from, the same place as their posted performance bench marks?
Look I asked a few basic questions about your trading methods, I never asked for specifics. What happened next was not a debate on semantics, but many of the regulars here whoâs background in options is very well known and extensive, explaining to you youâre just wrong in how you are using the buzz words and phrases you toss around here. For the most part people have been fairly polite as far as ET goes but you keep changing your terms and stories as more and more people point out the problems in them.
If you donât want to learn/discuss these things then simply donât post anymore. If youâre serious in learning about options this can be a helpful place.
Besides 90% of the people on ET beat the piss out of the S and P 500 just ask em!
Thanks coach, what you have confirmed for me is my way of counting ends up with the essentially the same result, it's just done a little different. In your example of $100,000 thats ~ 8 contracts. If I want to trade with the market I add up my deltas to = 8 (which I know doesn't make sense, please don't flame me for wrong terminology). If I want leverage of 1.5 then I count to 12. If I want a neutral position (I haven't yet) then count to 0. The other obvious money management item is max drawdown. 45 ATM short puts and 45 ATM short calls = delta neutral but obviously pretty risky.
Xflat - you're right, I'll go back to lurking. I'm not trying to sell anything here apart from myself. I publicly stated my performance for the sole reason to give me the chance of being able to prove it to someone across the desk interviewing me. I'm not claiming to have bought a Ferrari nor made millions. I'm just claiming SOLID performance vs the SP500 in real $. (Apparently everybody is above-average ).
Xflat - you're right, I'll go back to lurking. I'm not trying to sell anything here apart from myself. I publicly stated my performance for the sole reason to give me the chance of being able to prove it to someone across the desk interviewing me. I'm not claiming to have bought a Ferrari nor made millions. I'm just claiming SOLID performance vs the SP500 in real $. (Apparently everybody is above-average ).
You're applying beta to a nonlinear instrument, which is flawed. The leveraged "2x" ETFs perform linear, so using beta is correct and meaningful.
You're applying beta to the benchmark itself when trading SPYs. You profess to be trading a .65 beta. Obviously I take issue with your usage in this context, but you would have to be risking a small % of your capital to the markets if you're trading a beta of .65 [GE's beta]. I would bet a multiple of your portfolio you're risking a majority of your funds every month.
Let's assume you're exposing 10% [to ruin] of your capital to SPYs. It would require a 360% return on "at risk" equity to achieve a 36% return on the portfolio. 20% at risk would require a 180% ROC. You simply can't reconcile your stated returns with your risk-metric.
You're applying beta to the benchmark itself when trading SPYs. You profess to be trading a .65 beta. Obviously I take issue with your usage in this context, but you would have to be risking a small % of your capital to the markets if you're trading a beta of .65 [GE's beta]. I would bet a multiple of your portfolio you're risking a majority of your funds every month.
Let's assume you're exposing 10% [to ruin] of your capital to SPYs. It would require a 360% return on "at risk" equity to achieve a 36% return on the portfolio. 20% at risk would require a 180% ROC. You simply can't reconcile your stated returns with your risk-metric.
Quote from BeatingtheSP500:
Thanks coach, what you have confirmed for me is my way of counting ends up with the essentially the same result, it's just done a little different. In your example of $100,000 thats ~ 8 contracts. If I want to trade with the market I add up my deltas to = 8 (which I know doesn't make sense, please don't flame me for wrong terminology). If I want leverage of 1.5 then I count to 12. If I want a neutral position (I haven't yet) then count to 0. The other obvious money management item is max drawdown. 45 ATM short puts and 45 ATM short calls = delta neutral but obviously pretty risky.
Xflat - you're right, I'll go back to lurking. I'm not trying to sell anything here apart from myself. I publicly stated my performance for the sole reason to give me the chance of being able to prove it to someone across the desk interviewing me. I'm not claiming to have bought a Ferrari nor made millions. I'm just claiming SOLID performance vs the SP500 in real $. (Apparently everybody is above-average ).
I'll let coach correct all of the wrong assumptions you made in the post above addressed to him.
Short 45 straddles may be risky for some and barely at all for others. Someone calling himself a fund manager probably is not dealing in 45 lots but size a lot greater.
If you're interested in selling yourself I would suggest you learn the things the rest of us have been trying to show you and teach you. No professional is going to hire you if you walk into an interview and discuss beta in the context of options risk. The public statement of performance is meaningless since youâre unable to document it. Additionally, and what I was trying to say politely with the witty story about the cars is that hoards of people on internet market boards and sites make claims about performance, its useless. You say youâve claimed it in real dollars? Where? What real dollars? You claim you made up an index which is 32% higher then the S and P over roughly a years time? As I mentioned early on, a rolling position of options is not an index nor have you shown anything in real dollars. 32%, 320% 3200% theyâre all the same in that theyâre percentages on the screen, they represent nothing other then pixels with out anything real behind them. My suggestion is that if you want to be taken seriously then drop the "claims".
I would think short 45 straddles for a 100k account would be more than a blip.
Here's my performance over the past year up to the end of today, thanks for your time.
Here's my performance over the past year up to the end of today, thanks for your time.
Again, this is just squiggles on a page.
If you seriously want to establish a track record, I suggest you see a securities lawyer and have him set up your account as a fund that is audited according to standard criteria. Provided the results are as good as you say, you THEN will be able to apply for a job and be taken seriously.
And I'm STILL waiting to hear how you measure sentiment...
DMO beat me to it. Thats a lovely chart but what exactly is it? A chart of the number of Ferrari's owned by ET'ers? You can put any numbers you like on any scale they still mean nothing.
You may want to post acknowledgements to those peopleâs articles you lifted from the internet and posted on your site. Most of that stuff is copy written.
You may want to post acknowledgements to those peopleâs articles you lifted from the internet and posted on your site. Most of that stuff is copy written.