Dear Traders,
This is an attempt to meet fellow traders of similar or better calibre in the Texas area to collaborate and share best practices. I started trading options as a means to attain better liquidity and asset protection for my real estate business and my consulting practice. Here's a 2 year snapshot (from 12/15 to 01/18) of my account's performance against NDX, SPX and the RUT.
This was an emotional roller-coaster of ups and downs. Mostly downs with few brief periods of elation during the high watermarks. But as other traders know, we are constantly trying to play catch up to previous records. Needless to say, the focus on my consulting practice has greatly diminished during this time. Here's a dump of some metrics from IB's portfolio analyst report
Still more work to be done to refine the equity curve and drawdown periods. Strategy is a partial (70%) equity investments and partial option trading. The equity side is mostly with named stocks and couple of sectors that I understand and reasonably predict while being mindful of their fundamentals and technicals. The option trading part of the fund is primarily volatility arbitrage through option trading on the stocks and the indices; Butterflies, Straddles, Spreads, backspreads, calendars etc and watching the greeks like a hawk! The equity mirrors the indices. The daily hedged income and large spurts (and drops) come from the option trading.
Two years ago, the account started in the high 6-figure (<800k). Now its in the low mid-7 figure (2M-4M range). I have another trader friend who has done 35% return in this market, but with much better risk control than me. His account is also similarly sized.
Anyhoo, this email is really to encourage other fellow traders in the Texas area to PM and share best practices to find the perfect hedge. I don't have a problem sharing my hedging strategy, since I believe no two traders trades a given strategy the same way and there are several ways to make money in the process.
Cheers!
-m
This is an attempt to meet fellow traders of similar or better calibre in the Texas area to collaborate and share best practices. I started trading options as a means to attain better liquidity and asset protection for my real estate business and my consulting practice. Here's a 2 year snapshot (from 12/15 to 01/18) of my account's performance against NDX, SPX and the RUT.
This was an emotional roller-coaster of ups and downs. Mostly downs with few brief periods of elation during the high watermarks. But as other traders know, we are constantly trying to play catch up to previous records. Needless to say, the focus on my consulting practice has greatly diminished during this time. Here's a dump of some metrics from IB's portfolio analyst report
Still more work to be done to refine the equity curve and drawdown periods. Strategy is a partial (70%) equity investments and partial option trading. The equity side is mostly with named stocks and couple of sectors that I understand and reasonably predict while being mindful of their fundamentals and technicals. The option trading part of the fund is primarily volatility arbitrage through option trading on the stocks and the indices; Butterflies, Straddles, Spreads, backspreads, calendars etc and watching the greeks like a hawk! The equity mirrors the indices. The daily hedged income and large spurts (and drops) come from the option trading.
Two years ago, the account started in the high 6-figure (<800k). Now its in the low mid-7 figure (2M-4M range). I have another trader friend who has done 35% return in this market, but with much better risk control than me. His account is also similarly sized.
Anyhoo, this email is really to encourage other fellow traders in the Texas area to PM and share best practices to find the perfect hedge. I don't have a problem sharing my hedging strategy, since I believe no two traders trades a given strategy the same way and there are several ways to make money in the process.
Cheers!
-m
