The Surf Report
- Thread starter marketsurfer
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It is awfully quiet over here, where have all the cheerleaders gone???
As Surf's Annus Horribilis is coming to an end, I am feeling the Christmas spirit, so I thought I would give him a nice early present. Since it is pretty obvious now that he NEVER rolled over a contract in his life, I figured this is a nice and practical gift:
Pekelo's guide to How to rollover fictional contracts in 2 easy steps:
1. First determine the exit price for the current position. Remember, there are certain rules to good lying, you have to be logical, not too obvious and if serial lies, consistent! So let's pick a price that is not the best, but still favorable, like let's say breakeven. Even on Thursday the original position went in the green, so you could claim that you put a stop loss at breakeven. Good...
2. Now establish the correct price for the new contract. Once you understand how rollover works, you know that there is a price difference between the 2 contracts, in the case of YM it is about 90 points. It comes from the cost of carry, thus if you are long for 3 months, that's how much you are going to lose, it is kind of like time decay for options. (yes, you actually win that much if you stay short for the same 3 months) Now we don't want to be obvious, so we add let's say not 90 but 95 points (a little slippage) to the exit price and whola!, we got a new entry price!
That's it. Was it hard? No! So Surf enjoy the gift and I expect you to do it this way in March, no March and June same price contracts allowed!!!
I, as the accountant of the Journal have 3 choices:
1. The expiration price of your short was 13264, so I could credit you with a -90 points loss and no new short position.
2. We could say that your new short entry was at 13174 even though the contract never reached that level. In this case your position is -376 in the red.
3. We could just call it a year and end this futile exercise...
So which one is it? I let you think it over during the holidays.
Oh yes, Merry Christmas!
As Surf's Annus Horribilis is coming to an end, I am feeling the Christmas spirit, so I thought I would give him a nice early present. Since it is pretty obvious now that he NEVER rolled over a contract in his life, I figured this is a nice and practical gift:
Pekelo's guide to How to rollover fictional contracts in 2 easy steps:
1. First determine the exit price for the current position. Remember, there are certain rules to good lying, you have to be logical, not too obvious and if serial lies, consistent! So let's pick a price that is not the best, but still favorable, like let's say breakeven. Even on Thursday the original position went in the green, so you could claim that you put a stop loss at breakeven. Good...
2. Now establish the correct price for the new contract. Once you understand how rollover works, you know that there is a price difference between the 2 contracts, in the case of YM it is about 90 points. It comes from the cost of carry, thus if you are long for 3 months, that's how much you are going to lose, it is kind of like time decay for options. (yes, you actually win that much if you stay short for the same 3 months) Now we don't want to be obvious, so we add let's say not 90 but 95 points (a little slippage) to the exit price and whola!, we got a new entry price!
That's it. Was it hard? No! So Surf enjoy the gift and I expect you to do it this way in March, no March and June same price contracts allowed!!!
I, as the accountant of the Journal have 3 choices:
1. The expiration price of your short was 13264, so I could credit you with a -90 points loss and no new short position.
2. We could say that your new short entry was at 13174 even though the contract never reached that level. In this case your position is -376 in the red.
3. We could just call it a year and end this futile exercise...
So which one is it? I let you think it over during the holidays.
Oh yes, Merry Christmas!
Happy Christmas, Merry New Year and Happy Hanukkah to all Surf Report readers.
It has been a brutally difficult year in many ways, punctuated with an amazing,unplanned, positive twist of fate----
Multiple changes are rapidly taking place in the world and personally--- once I prided myself at being the first among my friends for doing many things and being totally in control after quiting the corporate world in 1995. Now, a new, unplanned chapter in my life will unfold in 2008, totally different complete with a change of scenery, etc--- its going to be a fun ride! See everyone next year.
regards,
surf
It has been a brutally difficult year in many ways, punctuated with an amazing,unplanned, positive twist of fate----
Multiple changes are rapidly taking place in the world and personally--- once I prided myself at being the first among my friends for doing many things and being totally in control after quiting the corporate world in 1995. Now, a new, unplanned chapter in my life will unfold in 2008, totally different complete with a change of scenery, etc--- its going to be a fun ride! See everyone next year.
regards,
surf
Quote from annaland:
Happy Chrismukkah!
Where's Waldo?!
thank you! the little girl in blue is a fine skater, you need to look really really close.....
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