SPX Credit Spread Trader

I would need more touches before calling a trendline significant. the lines you drew wer connecting two points mainly and any line can be drawn using two points. I like to see at least 3 clear touches or point before drawing a line and testing its validity.

Quote from RichardRimes:

Rally, coach and anyone else who is good with trendlines/charts. I'm working on my art 101 skills. The enclosed chart has two lines. Which (if either) would be more valid? The upper one starts with the high 8/04/06 but it was actually a down day. The lower chart is the breakout green candle on 7/28. The thing about the lower trendline is that there are 2 other points, 8/17, and 9/27 where the line can touch. Whereas the upperline has no real place to touch. Thanks! :)
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Quote from riskarb:

I thought that was Mav's primary strat? Did Mo license it to Mav? I am still attempting to wrap my head around how one can be long gamma whilst selling aapl 60 puts. :p
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No, Mav's still using the old schmamma technique. I use decamma. Performs much better than schmamma under 26 sigmas.

MoMoney.
 
Quote from riskarb:

I thought that was Mav's primary strat? Did Mo license it to Mav? I am still attempting to wrap my head around how one can be long gamma whilst selling aapl 60 puts. :p
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I know it must sounds like a newbie's crap , but I actually was able to establish very similar position ( theta and gamma +) via Time Fly.
PS - not trying to start a fight here , lol
:)
 
Quote from IV_Trader:

I know it must sounds like a newbie's crap , but I actually was able to establish very similar position ( theta and gamma +) via Time Fly.
PS - not trying to start a fight here , lol
:)
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Sure, it's possible under a sharp term structure of vol. Not as though you're going to be carrying any magnitude. It's easily achievable with an intermarket short vol-swap replication in which corr is primary risk. It requires a funky term structure or correlation risk when trading intermarket strips.
 
What is said : " ... sharp term structure of vol.... carrying any magnitude...... short vol-swap replication....a funky term structure .... trading intermarket strips."

What I hear : "The noise the teacher would make on Charlie Brown when she spoke....."
 
Quote from optioncoach:

What is said : " ... sharp term structure of vol.... carrying any magnitude...... short vol-swap replication....a funky term structure .... trading intermarket strips."

What I hear : "The noise the teacher would make on Charlie Brown when she spoke....."
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Event vol ... long both, but small order and variance ... a volatility box [long x // short x+n] ... short the pre // long the post earning's vols ... trading Nov vols in NDX against RUT.
 
Quote from RichardRimes:

thanks Coach and Rally. That makes sense. Another question, should the trend line touch the body or the top of the shadow? Or does it matter?
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RR,

Just remember that most of the minute details don't really matter when drawing trendlines. There is only one reason that a trend line will work in forecasting s/r. If a big group of other traders see it too and believe that there will also be s/r at that point. If you are the only one who sees that line then it is guaranteed to fail.

Cache
 
Quote from riskarb:

Event vol ... long both, but small order and variance ... a volatility box [long x // short x+n] ... short the pre // long the post earning's vols ... trading Nov vols in NDX against RUT.
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long 1th (+1)
short 2nd (-2)
long 3rd (+1)
where second is reporting with inflated vols
 
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