Negative Theta Options over Weekend

[BeatingtheSP500]

Quote from xflat2186:

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.

The tidbit about the otm put purchase was just to illustrate how I brought my leverage in slightly (the Number), the fact they are half price on a random walk up yesterday compared to the previous day was an aside that I found slightly interesting.

I didn't lay out my philosophy. I just started to, but the whole thing was derailed. Perhaps this is more of a synthetic stock play than text-book options play.
Can you tell me about accepted risk parameters?

 

[BeatingtheSP500]

Quote from optioncoach:

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.

It *sounded* like I caused confusion. I'm not in the industry but I'll remember your recommendation. Thanks

 

[atticus]

Thread Of The Year.

 

[xflat2186]

Quote from BeatingtheSP500:

The tidbit about the otm put purchase was just to illustrate how I brought my leverage in slightly (the Number), the fact they are half price on a random walk up yesterday compared to the previous day was an aside that I found slightly interesting.

I didn't lay out my philosophy. I just started to, but the whole thing was derailed. Perhaps this is more of a synthetic stock play than text-book options play.
Can you tell me about accepted risk parameters?

If you dont understand delta then you cant possibly know the effect of buying a random put on your net risk.

Not a single position you've discussed is a pure synthetic underlying play. Dont forget the SPY is not a stock.

 

[kinggyppo]

Quote from optioncoach:

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.

Thank you, after 10 pages a clear explanation of beta for the everyman. Now Joe Lunchbucket can quit his cubicle/construction site/warehouse. etc. and stick it to those dirty old option MM's. Back to the coal mines for the rest of us

 

[xflat2186]

Quote from optioncoach:

Well X I finished unloading your dishwasher, now got to wash your dirty cloths. Thanks I appreciate the work your letting me do.

Hey coach you know I repsect you and hate to see you like this but I want to help you back on your feet.

X

 

[atticus]

Quote from xflat2186:

Hey coach you know I repsect you and hate to see you like this but I want to help you back on your feet.

X

Chin-up Coach. Food-stamp Friday!

 

[El OchoCinco]

Quote from atticus:

Chin-up Coach. Food-stamp Friday!

Actually I get the government cheese at the end of the week, I still have some food stamps left over for some Doritos and Wonder Bread.

 

[xflat2186]

Aug Doritos how now?

 

[atticus]

Doritos + Wonder Bread + Red Vines = crazy delicious!