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-   -   The Perfect Option position (http://www.elitetrader.com/vb/showthread.php?t=24449)

Maverick74 Nov 12th, 2003 12:05 AM

The Perfect Option position
 
I think I have found the perfect option position. After doing a little work and research I have found a unique strategy that accomplishes so many things in one strategy. This position starts out delta neutral. It also starts out vega neutral and in many cases has positive theta or neutral theta. Then if the underlying makes a move one way or the other the position starts to add deltas in the direction of the move and adds vega to your position to benefit from an increase in VOL. The position at this point can also be gamma scalped. If the position returns to its starting point, it reverts back to delta neutral, vega neutral and positive theta. So to sum up, if the underlying sits still you will actually have a position where you will earn time premium, and if the stock breaks out, you will have all the benefits of that by having positive gamma, positive vega and your deltas will accumulate so you can gamma scalp them or let your position run. I think it is quite an unbelievable position.

Due to the explosiveness of this position and the huge income opportunity it represents, the old Mav man cannot distribute this secret strategy to the public. However you can buy my options course for $39.95 or call my toll free hotline 1-800-mav-da-man. Operators are standing by. This position is the real deal. Order now!

Maverick74 Nov 12th, 2003 11:52 AM

Re: The Perfect Option position
 
Quote:

Quote from Maverick74:

I think I have found the perfect option position. After doing a little work and research I have found a unique strategy that accomplishes so many things in one strategy. This position starts out delta neutral. It also starts out vega neutral and in many cases has positive theta or neutral theta. Then if the underlying makes a move one way or the other the position starts to add deltas in the direction of the move and adds vega to your position to benefit from an increase in VOL. The position at this point can also be gamma scalped. If the position returns to its starting point, it reverts back to delta neutral, vega neutral and positive theta. So to sum up, if the underlying sits still you will actually have a position where you will earn time premium, and if the stock breaks out, you will have all the benefits of that by having positive gamma, positive vega and your deltas will accumulate so you can gamma scalp them or let your position run. I think it is quite an unbelievable position.

Due to the explosiveness of this position and the huge income opportunity it represents, the old Mav man cannot distribute this secret strategy to the public. However you can buy my options course for $39.95 or call my toll free hotline 1-800-mav-da-man. Operators are standing by. This position is the real deal. Order now!

OK, seriously, there are a lot of smart guys on this board. Does anyone want to take a stab at what this position is. I am trying to get intelligent dialogue going here. If you think about it, you should be able to come up with the basic structure of this position based on what you know about gamma, vega and theta. I'm not going to post it until someone comes close to figuring it out. It will be interesting to see what people come up with.

tikipoki Nov 12th, 2003 12:25 PM

hmmmm
 
a couple (say, 10) short nearmonth straddles/strangles combined with MORE (say, 20) long farmonth straddles/strangles.

Might be a good one ?

Tiki

Hello_Dollars Nov 12th, 2003 12:31 PM

Yeah, that's the one I'll go with too. A ratio'd diagonalized iron condor.

What do we get if we win?

tikipoki Nov 12th, 2003 12:33 PM

Quote:

Quote from Hello_Dollars:

Yeah, that's the one I'll go with too. A ratio'd diagonalized iron condor.

What do we get if we win?

We get to test it and reap money (that is, if we win! ;))

Tiki

Nordic Nov 12th, 2003 12:33 PM

Re: hmmmm
 
Quote:

Quote from tikipoki:

a couple (say, 10) short nearmonth straddles/strangles combined with MORE (say, 20) long farmonth straddles/strangles.

Might be a good one ?

Tiki

definitely sounds like a volatility spread. Ratio Vertical or possibly a condor?? Not sure, either way I'm certainly not in your league Dude it's been awhile with options for me


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