Negative Theta Options over Weekend

Quote from xflat2186:

I'll let coach correct all of the wrong assumptions you made in the post above addressed to him.

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I think I did as much as I could do. I think the only way he will learn is when he is being interviewed by an option fund manager and talks of the beta of his portfolio and wonders why he never got that call back.

Seriously, I count about 5 people who know as much and more than me who contributed so I am the lowest common denominator, and all of us gave you good info to better manage your risk going forward. I don't care about past performances and charts because we are anonymous here and numbers are meaningless. What counts is how you speak of the subject matter and how you express your level of expertise.

This is important in interviews as well.

Good luck.
 
I do appreciate your posts.
Tomorrow, I will calculate net delta and convert to $ terms. I'll see if I'm comfortable with that. I've been calculating book delta for the past year in a different way, but have come up with essentially the same result. My book's subsequent moves did correlate almost exactly with what the calculation said they should be. My Alpha is deciding when to increase or decrease leverage (ranging .75 to 2.0). Thanks again, I've been flamed enough for a while. Even though my communication is flawed my thinking is much better.
 
Beta is an important concept I am adding this for the lurker's that don't really get it.

"By definition, the market itself has an underlying beta of 1.0, and individual stocks are ranked according to how much they deviate from the macro market (for simplicity purposes, the S&P 500 is usually used as a proxy for the market as a whole). A stock that swings more than the market (i.e. more volatile) over time has a beta whose absolute value is above 1.0. If a stock moves less than the market, the absolute value of the stock's beta is less than 1.0.

More specifically, a stock that has a beta of 2 follows the market in an overall decline or growth, but does so by a factor of 2; meaning when the market has an overall decline of 3% a stock with a beta of 2 will fall 6%. Betas can also be negative, meaning the stock moves in the opposite direction of the market: a stock with a beta of -3 would decline 9% when the market goes up 3% and conversely would climb 9% if the market fell by 3%.

Higher-beta stocks mean greater volatility and are therefore considered to be riskier, but are in turn supposed to provide a potential for higher returns; low-beta stocks pose less risk but also lower returns. In the same way a stock's beta shows its relation to market shifts, it also is used as an indicator for required returns on investment (ROI). If the market with a beta of 1 has an expected return increase of 8%, a stock with a beta of 1.5 should increase return by 12%.

This expected return on equity, or equivalently, a firm's cost of equity, can be estimated using the Capital Asset Pricing Model (CAPM). According to the model, the expected return on equity is a function of a firm's equity beta (âE) which, in turn, is a function of both leverage and asset risk (âA): "

source: wiki
 
Becareful with what you see at the close on anyday. Options dont have "settlement" prices each day. If you're looking at the last trade in a particular series, that trade my have occured long before the closing bell.

Getting back to the main topic, selling time, especially over the weekend is not a new strategy nor is it a particularlly good one for those without a lot of expereince.
 
Quote from xflat2186:

Becareful with what you see at the close on anyday. Options dont have "settlement" prices each day. If you're looking at the last trade in a particular series, that trade my have occured long before the closing bell.

Getting back to the main topic, selling time, especially over the weekend is not a new strategy nor is it a particularlly good one for those without a lot of expereince.
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quarters in front of a steamroller. Its all good until a multi sigma event goes against you. :) The op has issues with option lingo and probably doesn't understand synthetics on the level of a market maker as many of you do. I know that what atticus was saying he did not understand; but I wanted others who are reading this to have an idea of what beta is. The op needs to understand what delta hedging is, otherwise as I said he will eventually get crushed due to lack of understanding of the greeks. Maybe you can get him to drink a gallon of warm milk for MM knowledge. :p
 
Atticus, you have no idea the option positions in my account, so I think it would be hard for you to critique it. I don't even think you understood my point I was making about GE. The daily fluctuations in GE share price compared to the SPX is approx the same as my book.
You couldn't grasp the *idea* of the beta-type number I ascribe to my book. If you did, why didn't you offer the correct term? You might be a great options trader but you have offered nothing but noise here. Either you understood the meaning of what I was getting at, which was pretty simple, or you didn't. It was an unconventional, but accurate way of counting. Take a deep breath man.
 
Quote from BeatingtheSP500:

Atticus, you have no idea the option positions in my account, so I think it would be hard for you to critique it. I don't even think you understood my point I was making about GE. The daily fluctuations in GE share price compared to the SPX is approx the same as my book.
You couldn't grasp the *idea* of the beta-type number I ascribe to my book. If you did, why didn't you offer the correct term? You might be a great options trader but you have offered nothing but noise here. Either you understood the meaning of what I was getting at, which was pretty simple, or you didn't. It was an unconventional, but accurate way of counting. Take a deep breath man.
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What I am trying to understand is the obvious inverse theta correlation on the krebs cycle intermediates.

How do you account for this?
 
Quote from Reaver:

What I am trying to understand is the obvious inverse theta correlation on the krebs cycle intermediates.
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That's because you're not applying the CNBC noise quotient. Every time the phrase "I see a lot of upside potential" is uttered you have to adjust KCI back 6 degrees. "It's a stock pickers market" requires a 9 degree rollback.
 
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