Vanzandt vs. Destriero Trading Competition
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I know I am beating this to death, but there is so much material here that I can't stop. Can someone let this abject f'n moron genius know that the same strike call-mid = extrinsic value in the puts?
#TargetRichEnvironment
How can you sell the calls if you haven't bought the puts?! Sell the vol...
Another Brick In The Wall, Part II
#TargetRichEnvironment
How can you sell the calls if you haven't bought the puts?! Sell the vol...
Another Brick In The Wall, Part II
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Finally, a little breather. Been thinking about the butterflys. The market is probably a treaty or a tweet away from a 5% daily move. Why take overnight risk with a naked position especially when volatility is reasonably high right now? We are in agreement now concerning no naked options.
Will contact IB tomorrow to setup a new account. Will fund account with $31,248.75. This may seem to be an odd number, but it is $24,999/(1-.2). In other words, if I blow up the account by losing 20% of this starting value, I get a margin call and cut a check to your charity for a total of $500.00, including $250.00 blowup "bonus". Same rules apply to you.
Will be really busy again tomorrow, but should have a few moments here and there to answer any questions and address any concerns.
Will contact IB tomorrow to setup a new account. Will fund account with $31,248.75. This may seem to be an odd number, but it is $24,999/(1-.2). In other words, if I blow up the account by losing 20% of this starting value, I get a margin call and cut a check to your charity for a total of $500.00, including $250.00 blowup "bonus". Same rules apply to you.
Will be really busy again tomorrow, but should have a few moments here and there to answer any questions and address any concerns.
I've had VanZandt on ignore for so long I don't remember why I put him there, so I can't say for sure, but his ignorance of this sort of thing suggests that he does not trade options at all and has had little or no historical experience in options markets.
It is also the kind of information that the inexperienced option traders on this forum should be paying attention to, moreso even than the trades on the thread. It's basic practitioners' knowledge on the order of "always buy the wings." another rule of thumb that poster maxpossiblesuffering seems eager to ignore.
Puppies and kittens.
Vanzandt has established a novel method of determining microstructure variance absent liquidity. See, he applies a model with IV and days to expiration. It's really f'n BOSS.
Body Orifice Security Scanner?
I will be using multiple strategies in this trading contest. Intraday strategies will include opening plays, directional day trades, and reversion to mean trades on Dow stocks and financially related futures contracts.
My overnight positions that have a long bias will consist of short term butterfly spreads of two weeks or less until expiration and will be structured so that my maximum profit potential will be above the underlying price when the trade is entered. Although I will be still using money management on these trades, generally my maximum risk will be the net premium paid.
On my overnight positions that have a short bias, I will either buy short term VXX calls of two weeks or less or short a index where position sizing will take into consideration the possibility of a 5% adverse overnight move.
I will detail the thought process behind my trades. This will include my reasoning to enter the trade as well as trade management.
Lot`s of solid nuggets of info in this thread... enjoying the read.. Good Stuff!
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