Yes, the post before. I said i sold it to riskaddict, but then i checked the time of his post and realised i didn't sell it to him after all
Forget about hedging, if you're wrong in a trade, just get out. You could use out of money options to protect against big sudden moves though.
ok... since this is an open invite question No one here who is a retail short-term trader can "hedge" their positions and benefit one iota. In fact, it would simply create greater losses thru increased costs with no benefit. To "hedge" means to lock in = stop = cease = end further gains. There is no way to limit loss while leaving further gains open for short-term intraday trades. That is triple-true for flip-flip-flip-flip efforts. Remember the golden rule about trading: we cannot have what we want when it comes to emotional desire. If we could, 95% would profit wildly instead of fail out of this profession. Traders who want to halt risk while leaving gain intact have stop-loss orders to work with, and nothing else. Except of course for personal discipline and self-control
Schiz you hit the nail on the head when you said you're not worried about making money with the hedge. The whole thing with the delta increasing or decreasing as price works for or against the option seems to make them ideal for outright investing. They add to the winning trade without you having to. Vega seems to lag actual volatility so that just confuses me. And theta is just a pain in the ass. Buying and writing both have pros and cons and they all just cloud my head.
Iran objects to foreign troops in Bahrain http://www.reuters.com/article/2011/03/15/us-bahrain-usa-idUSN1417591520110315 Tue Mar 15, 2011 12:46pm EDT (Reuters) - Iran called the deployment of foreign troops in Bahrain unacceptable on Tuesday and warned Saudi Arabia and its ally Washington of "dangerous consequences" for intervening in the island nation's political crisis. About 1,000 Saudi soldiers entered Bahrain on Monday as part of an effort by the six-nation Gulf Cooperation Council (GCC) to help the government cope with protests by members of the Shi'ite majority. 1/ The move has alarmed Iran, the main Shi'ite power in the Gulf where most ruling families are Sunni Arabs. Analysts say Saudi Arabia's action might increase tensions with Iran -- both major oil exporters -- to dangerous levels. "The presence of foreign forces and interference in Bahrain's internal affairs is unacceptable and will further complicate the issue," Foreign Ministry spokesman Ramin Mehmanparast said at his weekly news conference. 2/ Tehran said Washington was responsible for pushing its ally and oil supplier Saudi Arabia into getting involved in Bahrain, a small but important U.S. ally which is home to the U.S. Navy's Fifth Fleet. 3/ The Pentagon has said it was not given any advance notice that Saudi or other regional forces would deploy to Bahrain. 4/ Tehran summoned the ambassadors of Saudi Arabia and of Switzerland, which represents U.S. interests in the absence of direct diplomatic relations. "Iran considers the United States as responsible for the dangerous consequences of such an illegal move," the ISNA news agency quoted the Foreign Ministry as saying. 5/ The arrival of the Saudi forces came after mostly Shi'ite demonstrators overwhelmed Bahraini police on Sunday and blocked the highway to the main financial district in the most violent confrontations since troops killed seven protesters last month. Bahrain's Shi'ites have complained of discrimination by the Sunni royal family and intervention in Bahrain by Gulf Arab troops is highly sensitive. Iran's parliament also condemned the Saudi deployment. "The Saudi rulers' sending of troops to Bahrain will not only bring a halt to the Bahraini people's movement, but also will bring dangerous consequences for the illegitimate Saudi ruling regime," said a declaration signed by 257 lawmakers, carried by the official IRNA news agency. Iran, which has crushed opposition protests at home, has welcomed uprisings across the Arab Middle East as an "Islamic awakening" against despotic rulers. Accusations abound of Iranian backing for activists among the Shi'ite majority in Bahrain, a charge Tehran has denied. Mehmanparast dismissed as irrelevant a question about the possibility of Iran sending forces to Bahrain. "Basically, we do not regard the presence and interference of other countries, especially the countries of the Persian Gulf region in the Bahrain issue, as correct," he said. "Such interference and increasing suppression and violent confrontation is not the solution to the legitimate demands of the people."
good to see your rarely used (these days) intraday HAT played effectively today . As you unleashed your hidden HAT , hope this will encourage you to use this little more often .
As a daytrader who holds for no longer than an hour, I find theta pretty useless. Vega is the tricky (read: the most effed-up) component because the volatility is never constant. Why not collect the premium by selling the ITM? As far as delta and gamma is concerned, once you buy the options (depending on the strike price) it essentially becomes delta-neutral. I have hard time wrapping my head around that. I'm still relatively a noob when it comes to exotic flavors of options so I apologize if I might have missed some of the finer nuances of your post. Anyway, thanks to everyone for commenting and I look forward to any future interaction with y'all on the art of hedging (both pros and cons).
As they say, once a daytrader always a daytrader. I try to pretend that I'm not, but that damn old habit keeps rearing its ugly head!
I've resigned myself to the fact that I'm a solid day trader and a nervous swing trader (I often swing trade stocks in the IRA accounts). I occasionally hedge my swing positions with options which allows me to hold through a little heat and give the trade time to do its thing, but if it doesn't work out, I can exit close to b/e thanks to the premium I got. As for CL, I found that trading enough intraday swings back and forth often produces as much profit as catching the right side of a swing trade for a day or two. As often as I've had those "If I'd shorted there and held until now" dreams, I doubt I'll ever swing trade this thing.