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

[cdcaveman]

On the research tip as of late
... fucked up.my weekly expiration trade on apple. I'm a pussy... its a buy premium and lose all of it or
Make many times it strategy and I traded out of it before it went up 6x the price I bought it at...

Read augen trading realities...

 

[cdcaveman]

ok going to write down a little math here to come up with a pairs trade i'm following with a friend i've made on here "deucy" on the hot/hst pair...

so a synthetic short on HOT

Short 1 Sep 55 call(s) at $1.60
Underlying stock at $55.05
Margin requirement: $1,261.00
+
Long 1 Sep 55 call(s) at $1.90
Margin requirement: $190.00

-1 call 160.00 + 1 put 190 = $30 debit
$30/5500= .005 interest i'm paying to put 1451 out instead of 5500

synthetic short on HOT= margin = 1451.00
debt= 30.00

Short 1 Sep 15 puts(s) at $0.30
Underlying stock at $15.25
Margin requirement: $310.00

+
Long 1 Sep 15 call(s) at $0.50
Margin requirement: $50.00

=

-1 put 30 + 1 call 50 = $20 debit
$20/5500= .005 interest i'm paying to put 1451 out instead of 1500

synthetic long on HST = Margin 360.00
Debit 20.00

total for synthetic pair trade....... Margin = 1811
Debt = 50.00 (or less)

Total for Underlying outright long/short = 7030
Reg-t Margin .5(7030) = 3515

1704 dollars more to use reg-T margin instead of Synthetics..
just hypothetically speaking.. i would think to find a way to use the 1704 dollars in another pair to possible uncorrelate the risk of the HOT/HST pair.. or not just my thoughts.. just brainstorming here.. but you could definitly use the 1704 to put some ratio backspreads for credits and use the 1704 for diversion protection.. incase say HST takes a dive or HOT shooots to the moon without HST following..

my problem now is 1811.00 is to much of a position in my 5000 dollar Think or swim account... thats 35 percent of my pot not to mention possible increase in margin requirements. not a good position size considering the account size.. Gotta think of a cheaper way to expose myself to pairs... and still thinking about that volatility indicator from the tradestation artical on RSI of ATR...

 

[cdcaveman]

I've falling on hard times with sleep... can't sleep! Excersize will help

 

[justrading]

Quote from cdcaveman:

I've falling on hard times with sleep... can't sleep! Excersize will help

Had the same problem a while back. Mind was on overdrive, could not switch off and 2 hours sleep was about the best I managed. Lost 7 kilos, not that I really needed to.

 

[cdcaveman]

I keep thinking it would be good for me to work with someone or for a hedge fund just someone with more experience then me. Digging up all this stuff myself is tough. And I know from experience that hang around people that know what they're doing helps

 

[cdcaveman]

Quote from justrading:

Had the same problem a while back. Mind was on overdrive, could not switch off and 2 hours sleep was about the best I managed. Lost 7 kilos, not that I really needed to.

I've always had sleep.problems
.. blah. I'm just gonna stay up.. go to bed early tomorrow night

 

[justrading]

BTW I emailed TOS and they don't accept accounts from Thailand either so it looks like IB will be getting another customer soon. I was more interested in the TOS platform for options than anything else, can't say I like their commissions.

 

[cdcaveman]

Quote from justrading:

BTW I emailed TOS and they don't accept accounts from Thailand either so it looks like IB will be getting another customer soon. I was more interested in the TOS platform for options than anything else, can't say I like their commissions.

Tos commissions are such a headwind... they give you 60 free trades... but fuck them all... the option analytics are OK... big whoop.. if your really gonna dynamically hedge or get dirty with a large book of options its far from great... its just as good as the hoadley adding except its real time..

 

[justrading]

Quote from cdcaveman:

Tos commissions are such a headwind... they give you 60 free trades... but fuck them all... the option analytics are OK... big whoop.. if your really gonna dynamically hedge or get dirty with a large book of options its far from great... its just as good as the hoadley adding except its real time..

Real time is interesting for a while, but what I really want to do is work out my trades in advance, put them on and then leave the computer and live my life, or what's left of it. If, then, else, all worked out, structured for the swings or longer, use SC to send alerts by email in case SHTF.

I'm pretty darned sure that when my time comes I won't be thinking "damn, I should have spent more time in front of my computer".

 

[cdcaveman]

Quote from justrading:

Real time is interesting for a while, but what I really want to do is work out my trades in advance, put them on and then leave the computer and live my life, or what's left of it. If, then, else, all worked out, structured for the swings or longer, use SC to send alerts by email in case SHTF.

I'm pretty darned sure that when my time comes I won't be thinking "damn, I should have spent more time in front of my computer".

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..