this is an interesting Area to post.. i wanna tell you guys a little bit about myself

[justrading]

Quote from cdcaveman:

No shit!!!!! The whole idea was to gain freedom. Not be glued anxiously to a fucking screen.. but hell you can delta hedge long term options and you can buy firm leaps. Or wide back month flys..

I'll get there soon. I took your advice and as I learn the various spreads, I use the Hoadley tool to get the Greeks, put on theoretical spreads for the various types, and then track in an Excel Options Workbook.

One thing I noticed (on CL Options) was my calculated Historical Volatility vs IV showed options were pretty overvalued, HV around 20%, IV 28%-32%. Sure enough within a couple of days prices dropped seriously in % terms.

One thing I like about Sierra Charts (among the many other things I like) is the HV indicator. I set it at the bottom of my charts and I can see how the underlying moves in terms of price, and what that does to HV over a 20 day and 50 day period.

 

[cdcaveman]

That's actually really cool. I can plot historical verse implied in interactive brokers.. I'm learning to.program indicators in ninja trader.. I'd love to associate volatility and volume .. you can't pull in options data into ninja... I know I'm gonna have to.use excel...

 

[cdcaveman]

I think the trick is to short volatility when the realized volatility starts letting up after its been kinda high

 

[justrading]

Quote from cdcaveman:

I think the trick is to short volatility when the realized volatility starts letting up after its been kinda high

Yup, I need to lay out a cheat sheet for the various plays. I've already got notes building from Natenberg's book, my 2nd Amazon order seems to be lost (but they want me to wait longer, the bums) and my 3rd order should be here anyday now.

BTW SC has the spreadsheet study that works like Excel so whatever you calculate there can be plotted on the main chart or in a region below the main. I really love that feature.

 

[cdcaveman]

Sierra charts? =sc?

 

[justrading]

Quote from cdcaveman:

Sierra charts? =sc?

Yes, sorry it's become a habit. $45 a month for package 5, think of it as the difference between one of those free online photo editing tools and Adobe Photoshop. Steep learning curve, but once you know how to use it, it does pretty much anything you want.

 

[cdcaveman]

my fly on aapl got killed..

bought for 3.90 665/675/685
expiring worthless as we speak... grrrr.

believe it or not it was in profit twice.. once this morning while i was sleeping..and the other time the day i put it on.. it was going for 417 but i couldn't close it out because of (PDT)...
more damage from sleeping to much.. i was actually considering open interest on this trade.. but there was 16K of open interest in calls at the 670 strike. gotta close these fucking things out when i have profit..

my account is down to 4500 from 5k now

 

[cdcaveman]

Quote from cdcaveman:

my fly on aapl got killed..

bought for 3.90 665/675/685
expiring worthless as we speak... grrrr.

believe it or not it was in profit twice.. once this morning while i was sleeping..and the other time the day i put it on.. it was going for 417 but i couldn't close it out because of (PDT)...
more damage from sleeping to much.. i was actually considering open interest on this trade.. but there was 16K of open interest in calls at the 670 strike. gotta close these fucking things out when i have profit..

my account is down to 4500 from 5k now

i figured on a last minute run up of the stock... salvaged 57 bucks out of the 390 dollar loss..

 

[cdcaveman]

another thing i did wrong is.. i have been trading the last hour before options expire.. and because i had a butterfly on i was trying to "recover" some money from .. which there is no hope in dope.. theres no hope in chasing a bad trade.. i could have gotton out of the butterfly eariler in the day for 190.. either way.. if i would keep consistant trading this .. i think theres an edge in it..

<a target='_blank' title='ImageShack - Image And Video Hosting' href='http://imageshack.us/photo/my-images/811/12665callatexpiration.png/'><img src='http://img811.imageshack.us/img811/8749/12665callatexpiration.png' border='0'/></a><br>Uploaded with <a target='_blank' href='http://imageshack.us'>ImageShack.us</a>

 

[cdcaveman]

just as a note.. aapl pinned the 665 strike... wonder if a good rattle off that strike will take a 665 straddle into profit... lets see ... right now..

665 straddle is ..
put.. 6.65 call 6.80
straddle = 13.45

check back on monday to see what the price is..