HowardCohodas Index Options Credit Spread Trading Journal

Discussion in 'Journals' started by HowardCohodas, Dec 30, 2010.

Thread Status:
Not open for further replies.
  1. That is the basis of the insurance plan I am working on.
     
    #401     Mar 1, 2011
  2. We'll see. :)
     
    #402     Mar 1, 2011
  3. Most of the criticism is done with class. One of the primary purposes for publishing my journal is quite selfish. It forces me to think deeply about things I may have glossed over during the development of my strategy. It exposes me to market regimes that I have not yet encountered. This has caused me to modify my management rules to better cover very unlikely but highly damaging market events.

    As long as I am learning, I'll endure some of the very classless posts. Sometimes with humor, sometimes not so much. :eek:
     
    #403     Mar 1, 2011
  4. My credit spread trading mentor told me that he did not mind if I traded options naked, but I was forbidden to trade naked options. :D
     
    #404     Mar 1, 2011
  5. I think I answered everyone's questions. If I missed any, let me know.
     
    #405     Mar 1, 2011
  6. daveyc

    daveyc

    Howard,

    You may also want to consider 'broken winged butterflies'. Or, you can embed a bwb on your current position.

    Just to confirm, buying the next month 'put' does create a calendar if using the exact same strike as the short front month option. But if you using a different strike it has a similar effect to a lesser or greater degree.

    Howard, you're up early! I'm still on Asia time:(

    Dave
     
    #406     Mar 1, 2011
  7. I operate asynchronously with the sun unless I have a meeting or am actively trading. I sleep when tired. I'm "instant on" when I wake. 2-4 sleep session usually total 7-8 hours in a 24-hour period. Besides, sleep is just an annoying interruption to doing fun stuff. :D
     
    #407     Mar 1, 2011
  8. Not much has been stated about how you "mitigate" a loss. You've mentioned rolling a position that has earned 80% of the credit, but no specifics about marked-losses.

    Will you add an opposing short vertical to one that is losing? For example, you're losing on a put spread so you add a call spread.

    How is adding duration (rolling) helpful in mitigating a loss?

    What do you do if the underlying gaps to your short strike or beyond?
     
    #408     Mar 1, 2011
  9. You have zero credibility with me as a consequence of the content of your posts and your attitude. Should someone with credibility ask specific questions, I will gladly answer them.
     
    #409     Mar 1, 2011
  10.  
    #410     Mar 1, 2011
Thread Status:
Not open for further replies.