Recent content by jj90

Currently I only trade the emini options so my experience is limited to that, but I can tell you r2k isn't too bad, and while Nas 100 isn't as liquid as NDX, offers a lot of strikes and the spread can be shaved. YM though is just........

Weeklies perform the same every week. What are you alluding to here?

There isn't a way to avoid it if you buy right before earnings. Either the stock moves more than what the market is pricing or it doesn't. The only way is to buy several weeks before when IV is still low, but then you have theta eating away until earnings. It's just shifting the risk around.

Yes, different strokes for different folks. I hear the big thing at the moment is oreo options.

Some will disagree, but most analyst prep doesn't make one a better trader. Also, while having a PHD in stats/math will look good these days applying for most IBanks, remember the old maxim : It's not what you know, but who you know.

Only thing I agree on is that this board is not as active as it could be.

I'd say you got the edge.

The problem with your rule 4 is that it's in direct violation of the rule 2 I stated. How do you propose win/loss ratio is more important than final P&L? Also, you haven't stated whether you are merely the counterparty to the buyer or an independent seller with your own trades.

Well Bramble's rules are more straightfoward to a competition as it will take out trading styles and clearly show the final result. Mine are more flexible. Choose as you will.

Well before we start picking options, shall we set the ground rules? Such as can the buyer or seller close at any time, or only at expiration? The choice of underlying, number of winning vs losing trades to determine win/loss or the final P&L to decide? Should be relatively easy to decide, but...

Yes I agree that if conditions are biased towards either buying or selling, selling/buying premium would decrease edge. What I was trying to get at is that with this decreased edge, the benefit is limited risk to an amount. As long as the 'hedge' doesn't push expectancy into negative terrority...

Now if you would have said that from the beginning, we wouldn't have blown up that other thread. It's a lot easier to understand when you give all the facts. From your quote, I can see your OTM strangle position on the FTSE index. By it being EU style, you can't be assigned, so you have the...

If there is no intrinsic edge, then hedging would simply take away from whatever edge you yourself put into the trade (good entry, risk management, etc etc), pretty much what Profitaker is saying above. But the way I see it, is that I'm trading off more edge from buying premium, for less risk...

Thus I refer to back to selling hedged premium vs naked premium. If it was so clear cut between naked long and short, verticals would have no use. There is a time for everything, in 99' you could have gotten away selling naked puts, in 01' it would have killed you. While selling gamma hedged...

You still haven't addressed where I lack knowledge on hedging. BTW, why don't you share that crystal ball that tells you exactly when to hedge and that tells your 'uncle' the FTSE doesn't end below 5625 + what he got for the puts? Views and opinions are like crap, there's a lot of it and none of...