Hi,
this is my trading Journal, (I share this journal on other forums).:
Starting capital $50K.
Each month I withdraw $2500 to pay the bills and start the new month with the remaining balance but never exceeding $50K.
I already have 2 opened positions.
I use options as a substitute to stocks.
An option is a contract with limited risk, if you don’t short it. It’s a valuable substitute to its underlying whether it is a stock or a currency pair. You can trade it as you’d trade the underlying or you can use more sophisticated ways like being short Gamma or long Vega, not to mention its hedging power. There are a myriad of books and sites on the subject, just google it. I use options for several reasons, the main of which are:
Of course there are many other reasons, but those above are just enough for now. Keep in mind we are not trading volatility, but a substitute for the spot. I assume here that readers have some knowledge on options pricing.
Current positions:
Delta Airlines- Symbol: DAL
Long DAL Oct16′ 47 Call
Qty: 4
Average Price: 1.96
Max Price: 2.20
Date:2015 Sept 10th 18:31 GMT +1
IV: 33%
Delta: 0.51
Lululemon. Symbol LULU
Oct 55/47.5 Bull Put spread
Qty: 5
Average Price: 2.40 Credit
Max Price: NA
Date:2015 Sept 11th 19:40 GMT +1
IV: 42%
Delta: 0.35
To make things transparent, by the end of each month I will post the account balance (fees included) with the P&L of each trades and the $2500 withdrawal. You can see that I give the exact time at which the trade is opened and I'll do the same when it is closed. I will start each month with that new balance without never exceeding $50K
this is my trading Journal, (I share this journal on other forums).:
Starting capital $50K.
Each month I withdraw $2500 to pay the bills and start the new month with the remaining balance but never exceeding $50K.
I already have 2 opened positions.
I use options as a substitute to stocks.
An option is a contract with limited risk, if you don’t short it. It’s a valuable substitute to its underlying whether it is a stock or a currency pair. You can trade it as you’d trade the underlying or you can use more sophisticated ways like being short Gamma or long Vega, not to mention its hedging power. There are a myriad of books and sites on the subject, just google it. I use options for several reasons, the main of which are:
- A low cost, mainly if you buy at a low implied volatility .
- A time value that can attenuate drawdowns if the trade goes against you.
- An implied volatility value that often does the same as above, usually it rises,adding value to the option, when the underlying is falling.
- You can be long while being bearish (buy Puts).
- A calculated risk even in a case of some black swan event, or just a usual flash crash or the global mess.
Of course there are many other reasons, but those above are just enough for now. Keep in mind we are not trading volatility, but a substitute for the spot. I assume here that readers have some knowledge on options pricing.
Current positions:
Delta Airlines- Symbol: DAL
Long DAL Oct16′ 47 Call
Qty: 4
Average Price: 1.96
Max Price: 2.20
Date:2015 Sept 10th 18:31 GMT +1
IV: 33%
Delta: 0.51
Lululemon. Symbol LULU
Oct 55/47.5 Bull Put spread
Qty: 5
Average Price: 2.40 Credit
Max Price: NA
Date:2015 Sept 11th 19:40 GMT +1
IV: 42%
Delta: 0.35
To make things transparent, by the end of each month I will post the account balance (fees included) with the P&L of each trades and the $2500 withdrawal. You can see that I give the exact time at which the trade is opened and I'll do the same when it is closed. I will start each month with that new balance without never exceeding $50K
