Niederhoffer's year end contest! ($2500 prize for 3 best 2011 trading ideas)

Quote from Soon2Bgreat:

Ok, let me re-phrase: When you short a put (for example) is your intent to capture/profit from Charm or is it simply another tool you use in your evaluation and hedging process?
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Soon2Bgreat,

Good question. I suppose the answer is both... (forgive the forthcoming run-on sentence)... For instance, if I am short a naked put that is OTM and we are close to expiration and the strike is close to the underlying, AND I know from testing that expiration weeks have been very positive in the last few weekly cycles (true), AND we have had uneventful Fridays, and if there are no significant headline numbers, then I am anticipating that as such the underlying will continue to rise into a Friday expiration, then I can determine that even if the underlying sits still, my overall delta will rise (become less negative), due to "Charm" as the puts expire. In addition, if I did capture a theoretical edge, the option charm can figure into my hedging over the weekend.
 
Quote from thoreau777:

Soon2Bgreat,

Good question. I suppose the answer is both... (forgive the forthcoming run-on sentence)... For instance, if I am short a naked put that is OTM and we are close to expiration and the strike is close to the underlying, AND I know from testing that expiration weeks have been very positive in the last few weekly cycles (true), AND we have had uneventful Fridays, and if there are no significant headline numbers, then I am anticipating that as such the underlying will continue to rise into a Friday expiration, then I can determine that even if the underlying sits still, my overall delta will rise (become less negative), due to "Charm" as the puts expire. In addition, if I did capture a theoretical edge, the option charm can figure into my hedging over the weekend.
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Interesting, thanks for the explanation.
 
I exhort that had Matador Fund not closed a few years ago, the fund will be hitting new highs at this point, of that I am certain. Listen, selling SPX/SPY put options is basically going long the underlying equity market.
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WTF?? Everything would be geat if only the market hadn't gone down .... and why pay some 'genius' to simply go long SPY?
 
Quote from Mav88:

WTF?? Everything would be geat if only the market hadn't gone down .... and why pay some 'genius' to simply go long SPY?
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Mav88,

This is not specific to Victor's fund. Probably more than 99% of all managed funds (mutual funds and hedge funds) mirror and closely approximate the SPY. If what you say is correct, then there should be no managed funds.
 
99% is too high, but anyway many (not all) funds are a waste- they are for people too ignorant and lazy to simply buy SPY.

Evidently matador was in that category, as you wistfully said yourself 'if only it could survive the dip'
 
LOL, challenged him personally?

Oh my, how dare I question anything about the great Matador fund and thoreau's comments (no matter how dumb)... I mean us 'little people' should be muzzled.

Really I don't give two shoits about Niederhoffer and all his aliases and lackeys here, I'm just amused.

Ad hominem attacks and argument by authority by the 'great one', that's some weak stuff
 
Quote from thoreau777:

As Visaria has permanently left this thread, I would like to reveal that everything I have said about him I did not mean in the slightest. I only wish him well, and I retract any negative words. I agree with him that Victor is indeed quite a "decent chap" on a personal level, and Victor is a loving, kind, compassionate, and most of all a humble man.

I hope I did not seem upset or agitated in any way, as nothing he said bothered me in the least. I took no offense to anything he said. Even though I remained completely undisturbed in his comments, I felt the need to return his harsh words with a few words that may bruise his delicate ego and make him think twice about insulting Victor.

This is not in my character to do this, ever, and I hope that I did not mislead anyone. I bear no ill will towards anyone or anything in this Universe. I only hoped that by returning "like for like", he would cease and desist and refrain from commenting with negative energy. And I was successful in my turning on "my shadow". He has left permanently, and he will not be commenting on this thread which was created to call attention to Victor Niederhoffer's contest and website, to enrich and educate.

I hope Visaria is well, and has a profitable year. He likely is an intelligent and skilled trader, and I am somewhat disapppointed that I had to use a language and tenor that is completely not a part of me. But sometimes one has to resort to uncomfortable measures to obtain an honorable end.
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VISARIA IS DEAD! HOPE YOUR HAPPY THOREAU.
YOU ARE A VILE MAN AND I'M GLAD WE DIDN'T MEET!
HOW DARE YOU COME ON A SITE FILLED WITH SERIOUS PROFESSIONALS
AND CAST YOUR VENOM AND SPITTLE. YOUR NAME HAD ME INTERESTED FOR A MOMENT BUT THAT TOO A FAKE! DO YOU REALLY LIVE IN CT? I THINK NOT!
THIS " VICTOR " HE MUST BE A GOOD LOVER.~stoney
 
Quote from stonedinvestor:

VISARIA IS DEAD! HOPE YOUR HAPPY THOREAU.
YOU ARE A VILE MAN AND I'M GLAD WE DIDN'T MEET!
HOW DARE YOU COME ON A SITE FILLED WITH SERIOUS PROFESSIONALS
AND CAST YOUR VENOM AND SPITTLE. YOUR NAME HAD ME INTERESTED FOR A MOMENT BUT THAT TOO A FAKE! DO YOU REALLY LIVE IN CT? I THINK NOT!
THIS " VICTOR " HE MUST BE A GOOD LOVER.~stoney
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Dear stoney,

I can only return your own vitriol with love and kindness. Your anger towards myself is misdirected. In tennis terms, I would label your shot as a "shank". With your assertion that Mr. Visaria committed suicide because I spoke to him with lighthearted humor, you show your hand as damaged soul (Your shouting "in caps" further suggests this). If you wish to know just who to point your anger to, it is the "flexions" who author Janine Wedel, in her new book, "The Shadow Elite: How the World's New Power Brokers Undermine Democracy, Government, and the Free Market", discusses in her new book.

Here is the Amazon link below:

http://www.amazon.com/Shadow-Elite-Undermine-Democracy-Government/dp/0465091067

The author points how certain power brokers are so above the law that they are "snaking through official and private organizations, creating a loop that is closed to democratic processes." Because of government outsourcing and deregulation, the end of the Cold War, the growth of information technologies, and other such shifts in paradigms, certain "flexions" are threatening the free markets. Just like in 2008-2009, companies like Goldman Sachs, General Motors, AIG (amusing renamed by bloggers as Government Sachs and Government Motors and Ain't I Greedy), and the other big banks were bailed out with trillions because of blind "long" bets on the U.S. economy. However, because they were involved in the process that author Janine Wedel outlines, they were bailed out and continued their prosperity... and duplicity.

In less time than it took for Nadal and Federer to cross swords/tennis volleys in Madrid last December 22nd, the power brokers "harvested" effectively all a poor working stiff's retirement money with a push of a button and boosting his future taxes and destroying his dollars' purchasing power. Coming back, because of Victor's honesty, he was not in a position to participate in such massive manipulation, and thus paid a hefty price. The gods at Goldman, on the other hand, got paid off handsomely. Victor's integrity would never have accepted such a bailout at the expense of the poor. He grew up in rather humble means. Thus, please direct your anger at those that deserve it. I can only hope that those in your generation have enough heart to take back this country and her democracy.
 
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