Recent content by belinea03

Charles is now in the UK. I've spoken with him and he has a lot he wants to present on Monday evening. He will be discussing: - How he forms an opinion on a stock - How he translates that into an option position - When he modifies or closes a trade - How to apply this to hedge stock positions...

Ok, the intent is to leg into an Iron Condor. Did you backtest using the standard long Condor and compare the results to that of your Iron Condor? The results should be interesting.

If I understand correctly you're being direction with an OTM Condor. What's the results using OTM verticals?

Charles Cottle, author of "Coulda, Woulda, Shoulda", ex- floor trader and Market Maker is giving a one-off lecture at King's College London on April 4, 2005. The lecture begins at 18:00. Details will be posted in the Trade2Win Events Diary as well as through Google (type "Charles Cottle")...

Hi Profitaker, Sure I'll continue the discussion. Who knows ... maybe you'll convert me :cheesy: Dissection is a method used not only by Charles, but also by a number of famous traders and options experts. For example, Natenberg uses the method to draw risk graphs for very complex...

Bull, Fanatics; I wouldn't go that far. The guys like American Options because of their liquidity, tighter bid/ask sprd, lower commission rate, volatility of the underlying, ... Ahh! I just realised ... you meant FANTASTIC on American style options. Cheers ;)

Effkay, After studying all the books recommend above test your understand by reading Charles Cottle's "Coulda Woulda Shoulda" - it's now a free e-book. When you begin to understand the humour you're on your way to a sound understanding of options.

Profitaker, Contray to your statement I did not dissect each bit and analyse risk in isolation. I dissected, isolated then ADDED the bits to assess the position as a whole: "Combining both positions results in a +theta, -gamma and small or neutral vega position. When the short position...

Happy to learn I have not offended anyone's sensibilities. :) When I design a posiition, particularly using complex or hybrid strategies, I usually also analyse to synthetic position then ask myself: would you be happy to place this trade? In some cases I find that the resultant strategy...

RogerM, My comments are not a criticism of the trade but rather should serve as commentary to encourage traders to look at option strategies in a manner to uncover non-transparent risks and manage them accordingly. Regarding the profit within the position. Perhaps I should have made it...

The position when dissected shows that it's a combination of two spreads: (1) a long 4825/4875 Jan/Jun Diagonal @ 98 Debit (2) a short 422/5125 Jun Strangle @ 69 Credit Net = 29 Debit An analysis of each componet trade will be useful. The diagonal is +theta, -gamma, +vega and would have made...

Please explain

I'm in the Sept04 550/600/650 Call Butterfly @ 18.5. It's now showing a profit of 54%. I'd to hear about trades other have placed or suggestions regarding better strategies.

Anyone in this trade using options?

The Sept04 390/360 M&S Bear Call (Credit) spead is doing nicely. Earned 22.5% on Friday's close. Sad thing is that was already 13.3% on day Phil withdrew his offer (23/9) and I had to wait almost 5 weeks to get the remaining 20%. Cest la vie.