Purely Mechanical Option Trading

Quote from dipper17:

The VIX index is a lagging indicator since the price of the VIX index is derived from the implied volatility in the SPX options.....
More...

dipper looks like you have this wrong as well.

VIX is a forward looking indicator.
'Implied volatility' means that, having implications into the future.

http://www.investopedia.com/terms/v/vix.asp
The ticker symbol for the Chicago Board Options Exchange (CBOE) Volatility Index, which shows the market's expectation of 30-day volatility. It is constructed using the implied volatilities of a wide range of S&P 500 index options. This volatility is meant to be forward looking and is calculated from both calls and puts. The VIX is a widely used measure of market risk and is often referred to as the "investor fear gauge".

Well it's forward looking in terms of the underlying equity, and as the underlying is what the options is priced off, amongst other things......
well then it's not a lagging indicator.
 
Quote from ljmlmvlhk:



Sorry, not wishing to detract from the thread, but jeff needs support over this point.

The comment: "nor, obviously did Jeff. " is really a cheap sneaky vindictive comment.
More...


Sneaky? is it in some coded language? Did I not thank the poster who brought it to our attention? Had Jeff been aware of his work why didnt he reference it 10 pages ago, that would have saved a lot of back and forth.
 
Quote from ljmlmvlhk:


Well it's forward looking in terms of the underlying equity, and as the underlying is what the options is priced off, amongst other things......
well then it's not a lagging indicator.
More...


My new friend I can see you’re anxious to find some fault in my posts keep trying.


Its forward looking in terms of volatility yes but not necessarily in terms of the direction of the underlying. As I stated the VIX is a lagging indicator in term s of the direction of the underlying, we were not discussing the future of implied volatility.

Jeff, as I said before that was a fantastic start, I am sure many people are anxious to see a couple more like that one!
 
Quote from dipper17:

......Jeff, as I said before that was a fantastic start, I am sure many people are anxious to see a couple more like that one!
More...

Yes, so far so good, the proof will be in the pudding with further calls which are documented shortly after. Certainly an interesting thread. Only because it’s good to see a battler win out, thru the sheer hard grind.

The impression I have gathered so far is jeff has partnered up with a programmer.
Jeff has come up with his system ideas through his trading experience, the programmer has agreed to join forces using his skills.
They’ve become buddies and each has skills, which they bring together.

There is some sort of understanding where they share the property rights and possible potential profits.

I can understand this as I am in a similar situation myself.
Not exactly the same, a programmer and I have become friends, I pay a small amount of money for the formula work I get done and get first preference often to his time.
My programmer is not that interested in trading my system, but gets ideas none the less for his own trading, albeit often he is too busy in his work to trade.
 
Quote from jeffalvinson:

Just bought May 138 puts at 2.24
Bracket set for
Limit Sell: 2.80
Stop: 1.70
More...


Sorry, in a hurry typing and forgot to mention the options were SPY puts.
 
Quote from dipper17:

Once again you nailed it, congratulations. How many contracts did you trade?
More...


Thanks dipper,

I bought 10.
I always buy (approximately) $2,250 worth of options contracts per trade.
 
You must log in or register to reply here.
Back
Top