Dest Jr's little trade journal.

DestJr made another $69 today and is up $1,203 from inception. 8% on capital. $230 PTT risk. He's up <5x risk. Kid's a natural!

 

boyo had a good day and just hit $1,500 MTM gains.

 

I think he is very lucky to have a dad like you. I truly believe this.

 

He's allowing me to post EOD totals. Up a hair under $1,700 from inception.

 

Shazam! Third best day since he's been trading this account.

 

I notice he's mostly negative delta, postive theta which he learned from you.
So question, im assuming most of these positions would be flies.
Whats the reasoning behind holding neg deltas? Are you comfortable holding -d in a bull market? Are you expecting the gains from the theta to outweigh any loss from the delta?
I notice you too seem to hold negative delta flies where i would be uncomfortable past a certain point holding -delta in an underlying that is going up.

 

Flies and diagonals. He's more prone (than I) to trade ATM flies. Once he's generated some deltas he "fly-boxes" the trade with an opposing fly.These are 121 flies intended to be "boxed" off. The diags are triggered on an arb-condition. He's only short 4D in SPX; perhaps 7D on Monday. An additional 7D (SPX=) via SPY.

 

If you have the time could you show an example of boxing off? Thanks.
Im having trouble visualizing it, if its what i think it is or something different.

 

Put fly up a bit on deltas -> buy overlapping call fly.

Start with 2170/2200/2230 PFLY. SPX drops six and you buy the 2220/2250/2280 CFLY.

 

His average hold is less than three days.