The Beauty of Options - Portfolio Insurance at a Discount

[traider]

Let's play a game. This particular portfolio was opened on April 8, 2020. So, we've been operating for 94 days. The average daily theta is NEGATIVE $150.33. I'm kind of nerdy, and I track my greeks daily.

If you were to multiply 94 days by $150.33, the total would be $14,131.02 in NEGATIVE theta. Here's the question. Has the portfolio suffered anywhere near a $14,131.02 drawdown?

I can't wait for the "scholars" to weigh in!!!!!!! LOL!!!! Y'all have a great weekend!

You need to show us the full portfolio holdings on a daily basis so that we can do pnl attribution for you. Just showing partial information on an ad hoc basis does nothing.

 

[Sweet Bobby]

You need to show us the full portfolio holdings on a daily basis so that we can do pnl attribution for you. Just showing partial information on an ad hoc basis does nothing.

Why would I do that for you? Just to be ridiculed by my haters?

 

[Sweet Bobby]

I've been playing around with the strategy a bit and while doing so had one more questions come up that wasn't quite obvious to me.

I'm finding this confusing. If you are selling at the next farthest out expiration at 3.00, you wouldn't be getting any more premium (but just have them further OTM). Or are you looking for some specific strike price where you would sell these new puts, in which case you'd end up with more premium?

You nailed it. I would rather my short puts be farther out of the money. I always target the $3 option.

 

[Sweet Bobby]

bobby did u make a ton today. Your hedges for a grind up market are working! I'm in the process of funding a new account that will trade based on your principles. You are a true inspiration

The portfolio was relatively flat, but I cashed in a condor for a small $300 realized profit. I did better today on my NQ scalps.

 

[deltaf0rce]

Let's play a game. This particular portfolio was opened on April 8, 2020. So, we've been operating for 94 days. The average daily theta is NEGATIVE $150.33. I'm kind of nerdy, and I track my greeks daily.

If you were to multiply 94 days by $150.33, the total would be $14,131.02 in NEGATIVE theta. Here's the question. Has the portfolio suffered anywhere near a $14,131.02 drawdown?

I can't wait for the "scholars" to weigh in!!!!!!! LOL!!!! Y'all have a great weekend!

The market is up 18% since your portfolio started, is that a fair benchmark for you? Where are you on the same timeframe?
https://www.wsj.com/market-data/quotes/index/SPX/historical-prices

 

[traider]

Bobby says he has other portfolios and this is just the black swan portfolio. So you can't benchmark it to SPX. Better to benchmark it to Empirica Capital. Also he trades discretionarily with his keen investment acument and always has an answer for every regime of the market. It is easy to assume that he handily beats the benchmark given his past replies.

 

[Sweet Bobby]

The market is up 18% since your portfolio started, is that a fair benchmark for you? Where are you on the same timeframe?
https://www.wsj.com/market-data/quotes/index/SPX/historical-prices

See below.

 

[Sweet Bobby]

Bobby says he has other portfolios and this is just the black swan portfolio. So you can't benchmark it to SPX. Better to benchmark it to Empirica Capital. Also he trades discretionarily with his keen investment acument and always has an answer for every regime of the market. It is easy to assume that he handily beats the benchmark given his past replies.

Correct! I have three other brokerage accounts and one 401(k). The portfolio that we talk about in this thread is a standalone strategy, but it is a complement to my other portfolios.

I’m taking a probabilistic approach to a volatility event later this year. We have the election, increasing COVID news, riots, dust storms, and killer hornets. Watch and learn from the master. I’m enjoying the hyperbolic moves in the market. As they go higher, I take profits and convert to cash. At the same time I am building an amazing black swan factory. We gonna blow the lid off this thing when the shit hits the fan!

 

[Sweet Bobby]

Bobby says he has other portfolios and this is just the black swan portfolio. So you can't benchmark it to SPX. Better to benchmark it to Empirica Capital. Also he trades discretionarily with his keen investment acument and always has an answer for every regime of the market. It is easy to assume that he handily beats the benchmark given his past replies.

I always have an answer, but sometimes it’s not the correct answer. At the end of the day, I trade the market as I see it. I use probabilities so that the edge is forever in my favor.

 

[Sweet Bobby]

/ES is mainly what I trade in the hedged account. I have no idea what direction ES will go, but I try to look at a few things to help me in the analysis. What do you see below? Where would you be placing your bets? I see a butterfly trade in there somewhere. Anyone else see a potential opportunity here?