trading option pitchforks

atticus · Jun 19, 2012

Quote from researcher248:

And what % do you intend to make with this trade?.

I think it goes below 1275 by July 20, but that's just my opinion. I rather be 100% short with no leverage.

I don't think in terms of % on individual trades as there is massive variability to % of portfolio. Say 5% on 5% is nothing. We didn't take it out prior to the election and I will be watching the prices of Spanish bonds. Think of the overwrite in terms of being long cable with a large swap into some UK turmoil.

THE trade is the 1345 calendar on Jun29/Jul06 on ES. Long that from 3.50. That's a double in a week. There is edge on vol and considerations related to the rollover (on option-tenor). I own it.

TskTsk · Jun 19, 2012

Quote from atticus:
THE trade is the 1345 calendar on Jun29/Jul06 on ES. Long that from 3.50. That's a double in a week. There is edge on vol and considerations related to the rollover (on option-tenor). I own it. [/B]

How do you come up with all these trades? For instance, how do you see a vol edge in this spesific trade over others like it? Why 1345 and not 1335 for instance.....I assume you're not exactly using a calculator to single out one trade out of hundreds of possible ones as having an edge..

atticus · Jun 19, 2012

Quote from TskTsk:

How do you come up with all these trades? For instance, how do you see a vol edge in this spesific trade over others like it? Why 1345 and not 1335 for instance.....I assume you're not exactly using a calculator to single out one trade out of hundreds of possible ones as having an edge..

I used to short vol heavy into Atlantic-snowstorms so this is an analogy. I don't really want to elaborate, but we'll see in a week.

amazingIndustry · Jun 19, 2012

short 3 ES? That is your general size? Just curious. From your options posts you come across as a larger size trader than this. 3 is pretty meaningless for someone who wants to make a living at this...

Just curious...no pun intended.

Quote from atticus:

For example, I'd rather be in the 5:1 Jul20 overwrite than in the PF right now. Short Sep ES from 51.00; short 5x the Jul20 1275P from 7.75. I have a 3x15 on at a bit better than that mark.

Short 3 ESU2 from 1351.00
Short 15 Jul20 1275P from 8.00 (mid)

17D per, hedged at 20D initial. Of course the initial delta is meaningless.

atticus · Jun 19, 2012

Hahaha, that 3x15 must look huge compared to your 10k unit FX "trades". I trade the naked stuff very small. I am often 500 to 1,000up on flies. Ask Hoi at buttontrader.com as he had to fix the code in his front-end to accomodate a 900-lot fly order that I attempted to fill on buttontrader.

amazingIndustry · Jun 19, 2012

ha, dont need to ask anyone atticus, you make assumptions (I never showed 10k positions in fx), but you show you trade 3 ES positions, lol. You must be the French of the French derivatives traders, getting all defensive justifying your 200,000 USD exposure. Don't get a heart attack old man, this trade may just blow your account out ;-)

Quote from atticus:

Hahaha, that 3x15 must look huge compared to your 10k unit FX "trades". I trade the naked stuff very small. I am often 500 to 1,000up on flies. Ask Hoi at buttontrader.com as he had to fix the code in his front-end to accomodate a 900-lot fly order that I attempted to fill on buttontrader.

atticus · Jun 19, 2012

Quote from amazingIndustry:

ha, dont need to ask anyone atticus, you make assumptions (I never showed 10k positions in fx), but you show you trade 3 ES positions, lol. You must be the French of the French derivatives traders, getting all defensive justifying your 200,000 USD exposure. Don't get a heart attack old man, this trade may just blow your account out ;-)

Don't worry; I am sure you'll get to 10k units some day soon. If I felt the need to pose like you, I would've exaggerated the fill. I see no need to compensate like some.

Better to be French and proud than some 5'3" Napoleonic asian kid who despises his heritage.

(100% Scandinavian)

And why exactly are you on an option thread? You sweet on my junk again? So flattering, my kollege!

diaoptions · Jun 20, 2012

Size doesnât matter - itâs how you use it that counts.

amazingIndustry · Jun 20, 2012

yada yada yada, watch your 3 futures dude!

Quote from atticus:

Don't worry; I am sure you'll get to 10k units some day soon. If I felt the need to pose like you, I would've exaggerated the fill. I see no need to compensate like some.

Better to be French and proud than some 5'3" Napoleonic asian kid who despises his heritage.

(100% Scandinavian)

And why exactly are you on an option thread? You sweet on my junk again? So flattering, my kollege!

amazingIndustry · Jun 20, 2012

as long as it scales with your account correct, fully agree.

In this case, Atticus seems to not have much in his account to show for despite his ridiculous post count and attitude to lecture everyone at ET regardless of whether its option (which I give to him), fx, equities, basically anything, he claims he is right and the world wrong. In this case his 3 ES futs are possibly correctly scaling with his small account, much smaller than he makes everyone believe.

Nobody who commands several million of investments (and thats how he tries to come across to everyone) trades 3 ES futures. Its like you have a Harvard degree and clean toilets. Nothing wrong with that basically but its just a huge waste of investment and talent. Another analogy, no hedge fund hires a PM/trader to generate 1 million USD annually. Nor does any hedge fund bring on a PM with a strategy that scales only to 5 million USD traded notional. I hope you get my point.

Quote from diaoptions:

Size doesnât matter - itâs how you use it that counts.