Agreed, we even got James Cordier on the thread. What a bastard.
We need to get back to @HappyTrading...
Good, positive name too...
to destriero (and all others that can help)
- Thread starter happy trading
- Start date
Agreed, we even got James Cordier on the thread. What a bastard.
We need to get back to @HappyTrading...
Good, positive name too...
And I answered OP's very first question that started this thread on how he can improve his knowledge and trading skills in options.
And to come back to OP's very original question, 13 pages ago. You just need to read any financial books that teach options (NOT the ones from James Cordier - Stay away from those if you see he is the author!!) or just simply read through investopedia.com. Bottom line: stick with books or websites that actually teach about options, its pricing theory, how they work, its greeks (make sure you understand them), the different combos/strategies (make sure you know how to draw a payoff diagram - this is VERY important!!) and stay away from books/strategies that tout a particular strategy like it's some kind of holy grail or miracle option strategy. Just like any financial assets, there is NO holy grail in options trading either. It's very important that you remember this. And then start off with demo trading and then eventually live trade to practice what you've learned from the books/websites. I would say trading practice is more important than theory in options trading because large part of the profit depends on the execution more I find than any other financial assets. If you are able to get a good execution, then the MM will get screwed (sometimes it happens and it's a great feeling when it does) but if you get a bad execution then you get screwed. It's really that cut-throat sometimes.
Options, once you understand everything is not that complicated or that mysterious IMO. So don't get fooled by those "gurus" who walking around like they know some kind of secret(s) to options or options trading that are superior than others. All those who thought they did all eventually failed. All it is just knowledge and lots and lots and lots of practice.
Good luck! Sorry it took me so long to answer your question. I got distracted a bit by the trolls on here.
I did my part. Not my problem that you guys hijacked the whole thread to talk about watches which 1) have now become redundant with cellphones and 2) are irrelevant if you are rich enough
Hey James Cordier traded options. This is a thread about options trading and what he did is a real-life lesson on shorting volatility. His trading debacle should be in every single options textbook when discussing shorting options.
If you are going to rub it in, rub it in with music! BAH!
At least the Asian chick is real!
Sorry, sorry, you guys know I cannot help myself. :-(
She was doing really well until she decided to do the breathless singing style. And her singing is so flat and thin comparing to real opera singers but that's a brave attempt for a pop singer.
Harvard Business School Case Study, for sure...
It is a valiant attempt at an impossible task. That's my humble opine on it. And I have heard MANY attempts on the song.
Your first paragraph does not compute..
Do you understand why market makers delta hedge their order flow,or how prop desks profit from shorting vol??
Every sane market maker/deriv desk who is short vol and non directional delta hedges..have you ever worked on a derivative desk that didnt delta hedge(at a bare minimum??)
And if you are short vol and directional,why would one delta hedge directional bets but not non direction??..
You dont appear to understand verticals/flys..
Of course you can have have a directional fly that is short vol.What would make you think otherwise??...Im getting the sense that you do not look at greeks when you trade,and we covered some very successful traders who looked at options in a non greek framework..
Paragraph 2....If you are going to talk options,its not simply magnitude of the move and direction..Options decay,so you need to time the trade fairly well or go out in time...Run simulations(Orats),and it will be very clear
When you refer to "HIS" strategy,are we talking DES???
If so,and with all due respect,you really are in no position to judge his style of trading....
Nor am I,but I have a decent insight as to what he does
Do you understand why market makers delta hedge their order flow,or how prop desks profit from shorting vol??
Every sane market maker/deriv desk who is short vol and non directional delta hedges..have you ever worked on a derivative desk that didnt delta hedge(at a bare minimum??)
And if you are short vol and directional,why would one delta hedge directional bets but not non direction??..
You dont appear to understand verticals/flys..
Of course you can have have a directional fly that is short vol.What would make you think otherwise??...Im getting the sense that you do not look at greeks when you trade,and we covered some very successful traders who looked at options in a non greek framework..
Paragraph 2....If you are going to talk options,its not simply magnitude of the move and direction..Options decay,so you need to time the trade fairly well or go out in time...Run simulations(Orats),and it will be very clear
When you refer to "HIS" strategy,are we talking DES???
If so,and with all due respect,you really are in no position to judge his style of trading....
Nor am I,but I have a decent insight as to what he does
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Directional fly is NOT butterfly imo. "Directional fly" is some kind of ratio spreads where one is leaning towards the market moving in one direction than the other. And I thought @trend2009 is saying the strategy is butterfly. So now it's verticals? This is the strategy? Doing verticals? LOL
Greek is just a more organized and precise way to quantify everything. It's still the same framework greek or non-greek. LOL It's like saying "commerce" vs "doing business". At the end, you are still talking about the same thing. LOL
Option decay = drop in magnitude especially if you are doing longer-term short vol.
It's the profit that talks really so there is no point to argue. IMO option strategies that try to limit direction and magnitude are 1) very limited in profitability and 2) expensive. Verticals might work better because it's 2 legs so the cost is not too much but depending on the strikes of the 2 legs, it's basically a trade-off between profitability and how much delta and gamma risk you can hedge away.
How do you have such insight in his strategy? Are you DEST???!!!
This thread is now turning into "Who is Dest?"
Greek is just a more organized and precise way to quantify everything. It's still the same framework greek or non-greek. LOL It's like saying "commerce" vs "doing business". At the end, you are still talking about the same thing. LOL
Option decay = drop in magnitude especially if you are doing longer-term short vol.
It's the profit that talks really so there is no point to argue. IMO option strategies that try to limit direction and magnitude are 1) very limited in profitability and 2) expensive. Verticals might work better because it's 2 legs so the cost is not too much but depending on the strikes of the 2 legs, it's basically a trade-off between profitability and how much delta and gamma risk you can hedge away.
How do you have such insight in his strategy? Are you DEST???!!!
This thread is now turning into "Who is Dest?"
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How can you say a fly with Delta is not directional?? You are a funny guy..
Break down a fly and you will understand why I brought up verticals..How is a fly different than a split strike fly??
What does a condor break down to??
Just out of curiousity,what do yo trade??
Break down a fly and you will understand why I brought up verticals..How is a fly different than a split strike fly??
What does a condor break down to??
Just out of curiousity,what do yo trade??
Directional fly is NOT butterfly imo. "Directional fly" is some kind of ratio spreads where one is leaning towards the market moving in one direction than the other. And I thought @trend2009 is saying the strategy is butterfly. So now it's verticals? This is the strategy? Doing verticals? LOL
Greek is just a more organized and precise way to quantify everything. It's still the same framework greek or non-greek. LOL It's like saying "commerce" vs "doing business". At the end, you are still talking about the same thing. LOL
Option decay = drop in magnitude especially if you are doing longer-term short vol.
It's the profit that talks really so there is no point to argue. IMO option strategies that try to limit direction and magnitude is 1) very limited in profitability and 2) unnecessarily expensive. Verticals might work better because it's 2 legs so the cost is not too much but depending on the strikes of the 2 legs, it's basically a trade-off between profitability and how much delta and gamma risk you can hedge away.
How do you have such insight in his strategy? Are you DEST???!!!