Sorry, I forgot. Nice trading....
Sweet Bobby the Super Trader
- Thread starter Sweet Bobby
- Start date
Sorry, I forgot. Nice trading....
Poop Dick can’t deny that the hedge worked today! I will Skype him, mail him a statement, or whatever! Today was a magnificent day in the markets and proof that my hedge worked. And he was posing how much I was losing on my trades. What a clown this guy is. Thanks for following the journey!
Wow did I have a lot of trades today! It’s going to take me a while just to place all these on the log!
Well not that many! I accidentally posted the screenshots too many times. Just look at the 2 screenshots, not 6.
Okay, I just entered all of the trades into my spreadsheet. I will be flat by the end of the day with my 8 expiring ES positions that are at a maximum loss.
If my calculations are correct, the net liq will be $8,456.04, with profits of $4,556.04. That’s a 117% return since February 3!!!
I will update everything once the market closes and my final net liq is posted. My calculations should be close.
What a great day of trading!!
If my calculations are correct, the net liq will be $8,456.04, with profits of $4,556.04. That’s a 117% return since February 3!!!
I will update everything once the market closes and my final net liq is posted. My calculations should be close.
What a great day of trading!!
I was close on my estimate. The portfolio is up 117% and I am out of all positions. Have a great weekend ! Not bad for 25 days.
Where is everyone? It is sooooo quiet in here. Where is Poop Dick? Where is Cramer? Where are all the haters?
Let me guess . . . you have your heads buried in the sand because you lost so much cash this week? Hmmmm? All the while, Sweet Bobby comes in here and shows you haters up by turning a quick 118% in only 25 days? Is that the problem.
For everyone else, I really do appreciate you following along. Hopefully we can all learn from each other. I like toying with the haters like a cat plays with mice. They think they are smarter than everyone else, and are quick to criticize those that think outside the box. I'm still waiting fellas, where ya at?
Let me guess . . . you have your heads buried in the sand because you lost so much cash this week? Hmmmm? All the while, Sweet Bobby comes in here and shows you haters up by turning a quick 118% in only 25 days? Is that the problem.
For everyone else, I really do appreciate you following along. Hopefully we can all learn from each other. I like toying with the haters like a cat plays with mice. They think they are smarter than everyone else, and are quick to criticize those that think outside the box. I'm still waiting fellas, where ya at?
Okay, so I've trying to figure out how you made this return Bobby - you originally sold some naked puts and calls in Jan, and early Feb. Then you started to do put ratios, deep OTM, whereby your number of longs was greater than your number of shorts, but you did these at break-even. This was early to mid Feb. At some point you bought around 40 longs puts :
Sweet Bobby the Super Trader
If these were bought at an average price of about 1.90, then that would amount to $7,600 of debit to your account. I realise you had 6 short puts, at a credit of $2,016. So basically you used all your account funds to buy a large number of far OTM puts? Hope the markets would drop? Hence the risk graphs you posted showed big profits in the event of a fall in the underlying.
As fate would have it, you got your big drop, and the longs made you a ton of money due to the increase in vol. So, it seems that most of your profits were made from going long and not short.
Is this about right?
Sweet Bobby the Super Trader
If these were bought at an average price of about 1.90, then that would amount to $7,600 of debit to your account. I realise you had 6 short puts, at a credit of $2,016. So basically you used all your account funds to buy a large number of far OTM puts? Hope the markets would drop? Hence the risk graphs you posted showed big profits in the event of a fall in the underlying.
As fate would have it, you got your big drop, and the longs made you a ton of money due to the increase in vol. So, it seems that most of your profits were made from going long and not short.
Is this about right?
FFS, thank you for your thoughtful questions. Even Supertraders make mistakes. I made a big one in this account.
This particular small account was fully funded on February 2 and I made my first trade on February 3. You are correct, I put on a few put ratio spreads. Then, when the market dropped a bit, I would put on a few more. Indeed, I had on more long puts than short puts.
Here was my first mistake. Knowing that the probability of success was greater than 90%, I sold a short income put outside of my short puts used as a hedge. This one worked fine, and I closed it for a 40% profit. So I thought, let's rinse and repeat. So I sold another income put although I knew it violated my rules for the golden ratio between shorts and longs. I thought I knew something, but I must always realize that I know nothing. But I was thinking we are in a bull market, so when in Rome!
The market dropped big and the income put went against me. I should have closed it at a 200% loser, but again I violated my rules thinking the market may spring back up. Big mistake! I ended up closing this put at like a 311% loss. I don't have my spreadsheet in front of me, but I suffered a realized loss on that put of about $2,500. But my hedge was perfectly safe if the market continued to go down.
If the market rebounded, I would be fine because at some point in the future I would begin selling puts or put spreads to recoup my loss. But, I can't do this until I accumulate sufficient long puts. Temporarily, my net liq was down to around $1,300. Ouch, right? It was all my fault. I violated the rules and the golden ratio.
Then the market continued to drop. Overnight, on Thursday I received a margin call!! When the markets reopened the next day I was out of the margin call, so no big deal. The positions were perfectly safe.
Then, at about 10:00 on Friday morning I was checking on the account. Over the last few days, my net liq had been violently moving around. I could never be sure what it was. It was jumping from $6,000 to over $8,000! It was time to start peeling off my hedge. Never having experienced such turmoil in the markets, I thought it best to get on the phone with ThinkorSwim for their guidance. You can imagine how long I was on hold.
I never spoke to an agent. Rather, I began peeling off my positions. I had to be very careful so that I wouldn't open myself up to extreme risk by closing too many longs and being unprotected. So I would sell a couple of my longs to generate income. That gave me the buying power to start peeling off my short puts. I went back and forth doing this until all my positions were closed.
Day done! It was a great learning experience. In the heat of battle, I discovered that I could methodically take off my hedge. I also learned not to violate the golden ratio of short puts to long puts. Greed got the best of me, and my net liq should be $2,500 higher than it is now. My bad! At some point in the future, I will be selling boatloads of short puts! Beautiful, beautiful, income generating puts that are fully protected by my hedge. Until then, I'll sit on my hands and let volatility settle down a bit before I start hedging again.
Some might say I should have left on some of the hedge, but hogs get slaughtered. I started taking off my hedge when VIX was at 49!! I can't look back. I know that was a good place to take the money and run.
Again, thanks for your questions. I hope I provided some answers. I will now start adding additional funds to the account. The day will come sooner than later when I will have a +$100,000 day. How does Daddy do it? I'm Bobby the Supertrader!!
Poorly timed? I think you mean perfectly timed!!!