Right. Keep comparing directional calendar held through earnings with non directional calendars closed before earnings.
Option Pit
- Thread starter Chris Paciello
- Start date
Right. Keep comparing directional calendar held through earnings with non directional calendars closed before earnings.
And neither have "no directional risk"
Hypothetically, ABC Corp cooks the books and the news comes out a week before earnings. You just wrote-off your double calendar debit and OchoCinco hasn't even considered the position. My point is that you're an amateur with this "no directional risk" garbage. A 50/55 double calendar is essentially double the exposure. Like the idiots buying put and call calendars at the same strike and thinking that they're "straddling" the calendars when all they've accomplished is doubling the position.
50 C/P synthetic = shares
50/55 C/P combo = risk-reversal
The analogy is a good one--the strikes are less than 2% apart.
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@destriero Unfortunately, people like you tend to hide behind the anonymity of the internet in order to insult and attack other people. They post things that they would not dare to say in real life. I'm not sure what are their motives - usually it is just boredom, jealousy, or pure hatred.
I on the other hand always post under my real name. This is because I always stand behind my words. I have a very solid reputation and name in the industry. Thousands people thank us for helping them to become better traders. Nothing that you say can hurt or dismiss it.
Show me a hater and I will show you a loser. Every single time. Instead of hatred, Open your heart. Be generous, not jealous. It will impact you karma in a good way.
I on the other hand always post under my real name. This is because I always stand behind my words. I have a very solid reputation and name in the industry. Thousands people thank us for helping them to become better traders. Nothing that you say can hurt or dismiss it.
Show me a hater and I will show you a loser. Every single time. Instead of hatred, Open your heart. Be generous, not jealous. It will impact you karma in a good way.
When I got into options, I figured there were approval levels 1,2,3 and 4.
Well similarly there seem to be learning levels 1,2,3,4. Sure, there are.
Sometimes you can make level 1 learning work with good money management, good risk management, maybe an understanding of charts to remove some risky trades.
Here it seems like we are fighting over whether level 2 education is better than level 4.
Maybe it is not, but if someone can make it work as I described above with money management, risk management and whatever ... does it become useless?
Well similarly there seem to be learning levels 1,2,3,4. Sure, there are.
Sometimes you can make level 1 learning work with good money management, good risk management, maybe an understanding of charts to remove some risky trades.
Here it seems like we are fighting over whether level 2 education is better than level 4.
Maybe it is not, but if someone can make it work as I described above with money management, risk management and whatever ... does it become useless?
I'd be happy to send you my name and address in a PM.
Do you think that you'd state the above if we were face to face? I guarantee that you would not. I suspect that you'd not act contrary to self-interest. I am truly not jealous or envious of your lack of knowledge and I consider you a fraud. I was waiting for the "jealousy" argument to rear its head. And here we are.
Kim's awesome rep:
https://www.google.com/search?q=kim...i57j69i60l3.2485j0j7&sourceid=chrome&ie=UTF-8
https://www.acceleratedfi.com/1-year-of-options-trading-update-absolute-disaster/
You have basically no internet signature other than references to your site.
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I still am amazed that you call your straddles non directional ....
I have never met an option expert that would call a long straddle non- directional. Also my straddle example was entered atm but called directional simply because after I mentioned it the stock moved higher.
Also when you buy a straddle ATM the minute the stock moves a few pennies up or down it is now directional. Delta neutrality is a momentary existence which disappears when the stock budges.
Just finding it hard to accept your option terminology when it flies in the face of Natenberg, McMillian, Cottle and Hull. You can determine that my masters level of the math of options is not relevant to you but when you make comments that go against option legends such as Natenberg and Cottle then that speaks for itself.
Those who think I am not being civil can simply refer to Hull, Natenberg and Cottle as authoritative texts and then make your own decision on whether a long straddle into earnings is no directional but a short straddle IS directional.
A strategy that makes money does not negate faulty logic behind it. Your strategy is clear to me how it makes money even though you misrepresent the Greeks you are exploiting. For me it is not enough to just make money, you should also be factually correct in the math behind options and terminology.
That is as civil as I can say it and if anyone disagrees, just let me know your expertise in options and the greeks.
I have never met an option expert that would call a long straddle non- directional. Also my straddle example was entered atm but called directional simply because after I mentioned it the stock moved higher.
Also when you buy a straddle ATM the minute the stock moves a few pennies up or down it is now directional. Delta neutrality is a momentary existence which disappears when the stock budges.
Just finding it hard to accept your option terminology when it flies in the face of Natenberg, McMillian, Cottle and Hull. You can determine that my masters level of the math of options is not relevant to you but when you make comments that go against option legends such as Natenberg and Cottle then that speaks for itself.
Those who think I am not being civil can simply refer to Hull, Natenberg and Cottle as authoritative texts and then make your own decision on whether a long straddle into earnings is no directional but a short straddle IS directional.
A strategy that makes money does not negate faulty logic behind it. Your strategy is clear to me how it makes money even though you misrepresent the Greeks you are exploiting. For me it is not enough to just make money, you should also be factually correct in the math behind options and terminology.
That is as civil as I can say it and if anyone disagrees, just let me know your expertise in options and the greeks.