Volatility trading
- Thread starter poopie
- Start date
I bought this GOOG fly about 30 minutes ago. Long the 500/540/580 for Feb27 from 29 debit. In one of my IRAs. 5% of net liq. Neutral to 540 cash.
Out at 28.68. NDX position remains. ($55 per $100K in equity).
I have virtually the same trade on, but it's not in r/t, so here is an NDX asym fly for Feb26 in real-time basis 4434 NDX cash. 8% of IRA account long from 82.40 (81.70 NBBO mid).
+4.10 gain, 5% on debit. Out at 86.50 filled. I have a fill-quality algo and this was a poor entry fill so I am quick to cover. I will enter something before the close in US index.
Badass thread but your acronym usage makes it hard to follow even with looking stuff up. If you could write out some of them the first time you use them.
I know it saves time and you want to just write how you normally post in your conversations with those in industry. But if we are going to extract value from your posts we will need a little help to even know what to research.
Thanks dude
What are CB Actions?
What is an SS-conversion?
Also helpful if you wrote out In The Month (ITM) options the first time you use the acronym.
Keep it coming. I like reading your progress.
I know it saves time and you want to just write how you normally post in your conversations with those in industry. But if we are going to extract value from your posts we will need a little help to even know what to research.
Thanks dude
What is a DD figure? Google yields bra measurements
Helpful if you wrote our Efficient Market Hypothesis (EMH) the first time using it.poopie said:
What are CB Actions?
[/QUOTE]poopie said:
What is an SS-conversion?
Also helpful if you wrote out In The Month (ITM) options the first time you use the acronym.
What is PA?poopie said:
Keep it coming. I like reading your progress.
DD = Draw-Down
CB = Central Bank
PA = Price Action
SS = Split-Strike Conversion: A synthetic vertical spread. The utility for Madoff was to complicate the process which enabled the scam. You would only enter a split-strike conversion if you already owned the underlying shares. A vertical spread (the equivalent) is the reduced position which is cheaper and involves fewer transactions.
Lol, don't taunt me right now bro. Someone on my forum was curious about RSI convergences. So I made a video covering that topic, and now you are walking around here claiming that's all I do. I probably mentioned RSI as a whole less than ten times throughout all the videos I made on Youtube. Hell..I've had a whole thread up on my forum on the flaws in trading just on RSI. You just keep on cherry picking doe. It's ok, I an't even mad.
All that I know (about your gambling) is that you have no edge. The RSI was just a guess. You're kind of thick as well, so not a good combination.
I know a lot of bright guys with no direct-edge, but they align themselves with people who have an edge, or with info-arbitrage (sell-side color). You have no access to either, but there is plenty of room in shooting-the-shit for you to start your own trading thread, baller.
Whoa! You're insinuating serious chops, you must be an accomplished authority.
Have you ever had a job in the securities industry? Have you ever been licensed?
Poopie, have you heard of these structural arbitrage strategies? You use leveraged ETFs
For example, the etf combination 100%= 45% TMF + X+Y+Z
where X+Y+Z =55% and represents some linear combination of:
x= SPXL
y= TQQQ
z= CURE
When re-balanced yearly it has 45-55% YOY returns since 2010. CURE is the most aggressive, but less diversified.
For example, the etf combination 100%= 45% TMF + X+Y+Z
where X+Y+Z =55% and represents some linear combination of:
x= SPXL
y= TQQQ
z= CURE
When re-balanced yearly it has 45-55% YOY returns since 2010. CURE is the most aggressive, but less diversified.
Sure, it's a basket or more specifically (can be) a D1 dispersion strategy. The tracking error of these leveraged ETFs make it difficult, but it can certainly work well. I prefer to use the 2x ETF options as there are some persistence there due to the variance structure. It's hard to go into detail as it's out of the scope of this thread. Basically, it's the difference between current implied vol and realized vol (variance) being overstated.
It's implied that you use leveraged-ETFs to reduce haircut (for those reading).
Someone asked in a PM about how/why I choose strikes in complex orders. It's a forecast of my directional bias * time; terminal vol (variance swap forecasting); a view of the skew (vol at strikes, vertically, see "Derman Delta"); as well as "summed" vol (sum of each strike-vol * ratio). I may get into that at a later date.
This thread reminded me of something very similar that ended very badly, same poster with a different username perhaps...
http://www.wickedfire.com/shooting-...in-10-000-100-000-6-months-8.html#post2185078
http://www.wickedfire.com/shooting-...in-10-000-100-000-6-months-8.html#post2185078