atticus' "ship it" vol trading journal

Discussion in 'Journals' started by atticus, Sep 5, 2012.

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  1. Almost nobody dares to speak his name, instead referring to him by epithets such as "You-Know-Who", "He-Who-Must-Not-Be-Named" or "the Dark Lord"
     
    #91     Sep 11, 2012

  2. The pile of rocks holding down the cape is a nice touch.

    [​IMG]
     
    #92     Sep 11, 2012
  3. The offer is still open. I'm packing my bags and be can there with just a couple days notice, do I need my laptop?
     
    #93     Sep 11, 2012
  4. Not for the fluffer position. You can leave the PC at home.
     
    #94     Sep 11, 2012
  5. Haha.....my fluffers are 20... and they pleed with so much more conviction
     
    #95     Sep 11, 2012
  6. so any of your "assistants" know anything about looking for good tickers to trade flys on? I'd love it if someone had something to say other then atticus that was intelligent on the matter. i'm definitly not say don't answer though..
    questions like..

    are single digit tickers completely out of the picture.. and for what reason?
    like bac etc...

    if you wanted to get long the stock.. would you get better long exposure going long a butterfly that is close to your target price for the stock.. or is a butterfly not a good way to get long.. its a better neutral trade?

    everything is measurable right.. so at what point does the "idea" of a butterfly being a good price come into place.... when volatility is been excessivly high and starting to wire down? or when implied is just always priced higher then realized? does anyone look at probability distros based on historical volatility to figure on how to spread wings?

    theres definitly a ceiling in a butterfly.. for example you would almost never exact a strike pin at your center strike.. and it would be crazy to trade for a strike pin when you can get into good profit and get out..

    so what kind of params are good to buy. and what parameters make good exits.. exits i mean like.. sure half your theta position gets wacked you get out.. but what about when things do go your way..

    my thoughts are.. the crime has to pay for the time... you only need a ticker to drop way out of your wings one time and its going to take a long time to make that up just scalping 7 to 10 percent each trade..
     
    #96     Sep 11, 2012
  7. Other than delta (per name) your portfolio theta is all the risk measure you need. After a time you'll know when your thetas are onerous. IOW, if you're a month to exp and you're running 3% daily thetas then you're long a lot of risk.
     
    #97     Sep 11, 2012

  8. Look for high IV options, while the position is open you want IV to drop and the stock to trade relatively flat.
     
    #98     Sep 11, 2012

  9. No shit.............. high iv is relative .. plus liquidity and being able to get all granular with widths is important
     
    #99     Sep 11, 2012
  10. Lets keep the discussion civil in the Journals section. If you want to make a big fuss post in the Option forums.

    http://www.elitetrader.com/vb/forumdisplay.php?s=&forumid=12

    Thanks

    :)
     
    #100     Sep 12, 2012
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