trading option pitchforks

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Quote from researcher248:

I don't trade kerb stocks...:D
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May a true retarded (Bavarian) chime in here briefly? Please don't brutalize me, k?

Atticus wrote: " Keep an eye on FB. ;) "

a) What is this in reference to? Doing this strategy on FB?
b) R248; what is a 'kerb' stock?

Again, I ask politely~~as options are without a doubt NOT my specialty, but I am curious.

Good thread; good 'fight', good stuff, good stuff!

peace

hedvig
 
Quote from stephan31:

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May a true retarded (Bavarian) chime in here briefly? Please don't brutalize me, k?

Atticus wrote: " Keep an eye on FB. ;) "

a) What is this in reference to? Doing this strategy on FB?
b) R248; what is a 'kerb' stock?

Again, I ask politely~~as options are without a doubt NOT my specialty, but I am curious.

Good thread; good 'fight', good stuff, good stuff!

peace

hedvig
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Fb was a reference to a wager I have with someone on this thread. ;)
 
Quote from atticus:

MTM $97.00 mid at 1327 SPX (-28 on SPX today).
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MTM <$86, $11 overnight gain on vol drop and obvious Monday's vol-mark. Gain of >$16 per PF from inception.
 
Quote from atticus:

Fb was a reference to a wager I have with someone on this thread. ;)
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Yep!

:D

I wasn't sure what context you meant; thus my question.

peace

hedvig
 
Atticus,
You mentioned that the downside risk can be managed in worst case scenario by preferably being cash secured.
How do you manage upside risk? With the underlying at some pre-determined delta?
Thanks,
Rajesh
 
Researcher,
Any reason you chose the 1330 for the calendar? Earlier, you wrote that the 1330 was better than Atticus's 1345 calendar. Any reason why it was better? In retrsospect, sure the market dropped big on Thursday. Was it just a bet on direction? I must concede that I don't understand 95% of this thread.
 
Quote from researcher248:

The calendars arrived at the finish line ahead of the verticals and the flys, with less execution costs than the flys, benefitting also from the 'vol pump', and not only the decay. The 1330 and 1325 were the best. Surprise, surprise. They arrived a mile ahead in a 100 m sprint, so to speak. I got lucky as usual and cocky as I have always been.

Someone that likes to do grunt work, please post the % returns comparison between flys, cals, and verts. (Pick 3 of each), From the high day to the close on friday. Thanks. (Hedvig?). While you are at it please also post it for crude oil. Maybe you'll learn something, as I did. :)

Where can I learn KOs and "soft exotics"?. :)

sle: Please explain in detail your "cool" way of USING x-delta risk reversal normalized by ATM volatility (as clearly or more than atticus explained the Pitchfork tool), so that this humble retard can learn to apply knowledge quickly. And to also calibrate your intelligence level.:p

Ignorance is my enemy. I combat it with hard work (preferably by Hedvig).:p
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You buy calendars to buy vol. You buy flies to sell vol. Flies will generally have a better R/R at best-case (pinning scenario) and under many deciles on vol. The "verticality" makes it so. It's a tangent beyond the scope of this thread, but.. I'll look at the 20-wide (ex. 10/30/50) fly vs. the calendar next Friday and compare the payoff to yesterday's close. I'll bet that the fly outperforms... and I am a fan of calendars. It's a play on the term-structure vs. a single-date.
 
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