Thanks for the pointer. I hadn't yet run across Baird (I'm assuming you mean his "Option Market Making" book), but it looks pretty good (h/t...
Your trading platform should have an indicator for it. Here's what the one in TradeStation looks like: [ATTACH]
Risk:reward ratios are always balanced by their complementary win rate. The default overall probability is 50/50 regardless of which one you pick...
Let's take the (by no means unusual) case of a given stock's volatility being at 100%. Take a wild guess at what the chances of doubling that...
Your experience is not implicit in your original post; in fact, the number of obvious errors in it (a delta of .70 - never mind that deltas are...
It's worth noting that this perspective - and essentially all negative perspectives on this topic - are applicable to every single kind of trade,...
Note that I only recommended the available education, and not anyone's specific approach. On that topic, going with what someone else tells you to...
@Wheezooo, I wasn't quoting you - or anyone. Note the 'variety' qualifier for the general case; I'm grouping the types of advice I've received as...
[IMG]
You have far too many incorrect assumptions (e.g., your concept of delta is backwards, as is your understanding of risk/reward for credit spreads...
Sure. I'd like to get more skillful at options-related adjustments - knowing which ones make sense in what situation, and understanding their pros...
Decrease the amount you're risking; keep decreasing until it doesn't bother you any more, and only increase it when you feel a positive itch for...
Thanks for trying.
@Wheezooo, it may be that we can't communicate at all; you have the habit of swinging for the fences and making absolute statements in places...
Doing my best to track with you, but... not assuming reversion cuts the ground from under all credit trades, where selling at high IV and...
No worries - thread confusion happens. :) Cheers!
Interesting. So, as the price moves, you're continuously either taking losses or making gains, despite not having booked either one? That seems...
[laugh] @Wheezooo, there's a basic principle of communication that says "you can always make someone wrong by shifting scale." You've just done...
That took an uncomfortably long number of seconds before I got it. Check, the wings are a long strangle. As soon as I subtract the (narrower)...
Thanks for the response. I agree with the general principles - pretty much textbook stuff - but don't believe that there's a direct correlation to...
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