duc's Journal

This is a discussion on duc's Journal within the Trading Journals forums, part of the Reception category; Update... In addition to the returns shown here, there is an additional return generated through the selling of Option premium. ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Sep 2, 2012, 5:06am   #16
 
ducati998's Avatar
Joined Aug 2003
Re: duc's Journal

ducati998 started this thread Update...

In addition to the returns shown here, there is an additional return generated through the selling of Option premium. This is very low risk.

jog on
duc
Attached Thumbnails
graph_02sep2012.jpg  
__________________
Mundus vult decipi.......ergo decipiatur
ducati998 is offline   Reply With Quote
Old Sep 2, 2012, 12:53pm   #17
Joined Feb 2012
Re: duc's Journal

What is your method?
The Leopard is offline   Reply With Quote
Old Sep 2, 2012, 4:53pm   #18
 
ducati998's Avatar
Joined Aug 2003
Re: duc's Journal

ducati998 started this thread
Quote:
Originally Posted by The Leopard View Post
What is your method?
You want the recipe to the secret sauce?

There are two primary methodologies. The first is a core holding of stock, in this case an ETF, the SPY, for diversification and that it tracks the S&P500. With this core holding, I hold a variable value of cash. This cash/stock ratio is traded with a market timing methodology which is quant. based, and incorporates valuations.

The second leg of the methodology involves selling Option premium. As Option contracts are in 100 share lots, to participate in this leg of the strategy, you need a portfolio of a certain size.

Assuming that you do, you sell premium. The Calls, are covered, and the price that you sell the premium, is of course where you want to sell stock. Thus the premium creates a cash-flow while you wait.

Put premium is a little different. You are obviously selling naked Options. The cash you hold, provides the margin required. Again, you sell at a price that you want to buy at.

The tricky part is that in a falling market, where you want to buy stock, and let's say it is a crash type of market that we saw in 2008, IV's will go through the roof. This means that you can't simply close the trade and buy the stock, the exploding IV will create, likely, a loss.

You have to wait to be exercised on expiry. This of course creates a potential problem. The market may bottom while you wait for expiry, and reverse. The choice is: [i] miss out on buying [ii] buy and risk doubling the amount of stock that you buy. Neither is a great choice.

For the less risk averse, simply do not sell naked Puts. Stick with only selling Call premium. With my system, that is actually a very low risk trade.

As you can see, I've only had it tracked for approaching a year. Keep your eye on it, especially if we have another major leg down and watch its performance. The Option premium isn't included, but I track the Option trades on my blog as transparently as possible, and will calculate the additional returns to the portfolio.

jog on
duc
__________________
Mundus vult decipi.......ergo decipiatur
ducati998 is offline   Reply With Quote
Old Sep 2, 2012, 5:17pm   #19
Joined Feb 2012
Re: duc's Journal

Quote:
Originally Posted by ducati998 View Post

For novice, even intermediate traders, many are loath to seek help. Partly, I'm sure that is due to so many rip-off merchants within this industry, there are however many legitimate and honest ones.
Could you name a few legitimate and honest ones? I can't think of any that have been advertised or discussed on T2W that are.

This information might be of great help to new traders.
The Leopard is offline   Reply With Quote
Old Sep 2, 2012, 5:20pm   #20
 
ducati998's Avatar
Joined Aug 2003
Re: duc's Journal

ducati998 started this thread
Quote:
Originally Posted by The Leopard View Post
Could you name a few legitimate and honest ones? I can't think of any that have been advertised or discussed on T2W that are.

This information might be of great help to new traders.
In what style? Stock, Futures, Options? What timeframe, intra-day, Swing, Position, Fundamental/Technical...

There are so many possibilities and combinations, where do you want me to start?

jog on
duc
__________________
Mundus vult decipi.......ergo decipiatur
ducati998 is offline   Reply With Quote
Old Sep 2, 2012, 5:27pm   #21
Joined Feb 2012
Re: duc's Journal

Quote:
Originally Posted by ducati998 View Post
In what style? Stock, Futures, Options? What timeframe, intra-day, Swing, Position, Fundamental/Technical...

There are so many possibilities and combinations, where do you want me to start?

jog on
duc
Any legitimate and honest trainers or educators of any kind.
The Leopard is offline   Reply With Quote
Old Sep 2, 2012, 5:36pm   #22
 
ducati998's Avatar
Joined Aug 2003
Re: duc's Journal

ducati998 started this thread
Quote:
Originally Posted by The Leopard View Post
Any legitimate and honest trainers or educators of any kind.
Ok, I'll compile a short list.

jog on
duc
__________________
Mundus vult decipi.......ergo decipiatur
ducati998 is offline   Reply With Quote
Thanks! The following members like this post: The Leopard
Old Sep 2, 2012, 8:10pm   #23
Joined Feb 2012
Re: duc's Journal

Quote:
Originally Posted by ducati998 View Post
Ok, I'll compile a short list.

jog on
duc
I'd be amazed if it was anything else.
The Leopard is offline   Reply With Quote
Thanks! The following members like this post: kimo'sabby
Old Sep 2, 2012, 8:20pm   #24
Joined Apr 2010
Re: duc's Journal

Quote:
Originally Posted by The Leopard View Post
I'd be amazed if it was anything else.
It's quite ironic that this 'short list' is taking so much time to compile.
kimo'sabby is offline   Reply With Quote
Thanks! The following members like this post: The Leopard
Old Sep 4, 2012, 7:11pm   #25
 
ducati998's Avatar
Joined Aug 2003
Re: duc's Journal

ducati998 started this thread Leopard,

Here is my "short" list.

https://www.thechartist.com.au/

I know Nick personally, and can vouch for his honesty. All that remains is, do you trust my recommendation

Blog

I don't know Steve personally, but I have followed his blog/trades/methodologies, and they are sound.

jog on
duc
__________________
Mundus vult decipi.......ergo decipiatur
ducati998 is offline   Reply With Quote
Old Sep 4, 2012, 7:48pm   #26
Joined Feb 2012
Re: duc's Journal

Quote:
Originally Posted by ducati998 View Post
Leopard,

Here is my "short" list.

https://www.thechartist.com.au/

I know Nick personally, and can vouch for his honesty. All that remains is, do you trust my recommendation

Blog

I don't know Steve personally, but I have followed his blog/trades/methodologies, and they are sound.

jog on
duc
The Leopard is offline   Reply With Quote
Old Sep 4, 2012, 8:02pm   #27
Joined Feb 2012
Re: duc's Journal

Quote:
Originally Posted by ducati998 View Post
Leopard,

Here is my "short" list.

https://www.thechartist.com.au/

I know Nick personally, and can vouch for his honesty. All that remains is, do you trust my recommendation

Blog

I don't know Steve personally, but I have followed his blog/trades/methodologies, and they are sound.

jog on
duc
OK, you had me going there for a moment. I admit, I fell for it, I actually believed that you were being serious there. Very funny, good joke. Now you've had your fun, what's the real short list?

Last edited by The Leopard; Sep 4, 2012 at 10:48pm.
The Leopard is offline   Reply With Quote
Thanks! The following members like this post: kimo'sabby
Old Sep 4, 2012, 10:35pm   #28
Joined Apr 2010
Re: duc's Journal

kimo'sabby is offline   Reply With Quote
Old Sep 9, 2012, 1:38am   #29
 
ducati998's Avatar
Joined Aug 2003
Re: duc's Journal

ducati998 started this thread This week's results:

jog on
duc
Attached Thumbnails
graph_2_9sep12.jpg  
__________________
Mundus vult decipi.......ergo decipiatur
ducati998 is offline   Reply With Quote
Old Sep 16, 2012, 7:04am   #30
 
ducati998's Avatar
Joined Aug 2003
Re: duc's Journal

ducati998 started this thread Two sets of results. SPY as usual and a portfolio of international ETF's as the second.

jog on
duc
Attached Thumbnails
graph2_160912.jpg   graph1_160912.jpg  
__________________
Mundus vult decipi.......ergo decipiatur
ducati998 is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
my journal 3 Yamato Trading Journals 5138 Jun 28, 2015 9:36pm
Another journal? C'mon! Supporter Trading Journals 27 Dec 28, 2011 2:30am
My Journal for all to see herronryan Trading Journals 44 Aug 26, 2010 4:32pm
My little journal. HaloTrader Trading Journals 16 Jun 26, 2009 12:02am

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)