Vanzandt vs. Destriero Trading Competition

[vanzandt]

To maintain symmetry (price paid = requirement).

Seems like a waste of $1600. Oh well, you're the pro.
Hey I want a mulligan on BAC.
AHhhhh
j/k

 

[SumZero]

Drawdown: if either parties account reaches $80,000 they will have lost the contest. Closing basis; calculated at the close of each day.

No other rule for DD other than keeping the account above 80K ?

 

[OptionsOptionsOptions]

DestVZ1: GOOGL Jul6 1087/1125/1200 231 puts. Four lot at 43.75 mid. $17,500 debit req. 17.5% allocated.

Just curious... why buy the 2 1087.50's.
Whats the reasoning behind that?

I like to break it down into easily visualized trades - then put it back together.

• 1/2/1 fly is easy to figure out - so I start with that.
• 1087/1125/1200 = price target about $1125.

• 1/1 put credit spread.
• 1087/1125 = price target $1125+

Together the 2/3/1 put fly has a price target of $1125 or tad above.

 

[destriero]

Seems like a waste of $1600. Oh well, you're the pro.
Hey I want a mulligan on BAC.
AHhhhh
j/k

You have to buy the 2-lot wing or it would be a short backspread 1x3 and 40K in variation margin.

 

[destriero]

No other rule for DD other than keeping the account above 80K ?

Closing netliq on the day has to be above $80K. I didn't know what VZ would be posting so it seemed best to limit the DD figure to a daily close.

Edit: I will update DD/edge each night for both participants after I check T&S.

 

[JamesRoscoe]

Is the implied volatility of these trades discussed?

 

[destriero]

DESTVZ3: AAPL Jul6 180/185/195 in puts. Long 10 lot from 5.87 mid. 6% allocation (30.5% allocated).

 

[destriero]

Is the implied volatility of these trades discussed?

The implieds are listed on the right of the screenshot; per strike. Questions welcome.

 

[SumZero]

Closing netliq on the day has to be above $80K. I didn't know what VZ would be posting so it seemed best to limit the DD figure to a daily close.

My question is because the temptation of higher risk bets close to the end. If one has 200K and another 180K, a 50% DD doesn't matter because it will end up, anyway, above 80K.

 

[destriero]

My question is because the temptation of higher risk bets close to the end. If one has 200K and another 180K, a 50% DD doesn't matter because it will end up, anyway, above 80K.

Yeah, we should definitely make the max DD 20% on high-water mark.