Karen the Supertrader - TastyTrade Hybrid Experiment

Discussion in 'Journals' started by Sweet Bobby, May 18, 2016.

  1. This is basically the answer. I did credit spreads for a maximum loss amount I was willing to lose in the absolute worst case scenerio in exchange for the profits I was making. I did maybe 50 to 60% max of my total portfolio so never a blowout could happen. The best way to control risk in selling naked options is to simple control how much of your portfolio you put at risk. Even with naked options this can be controlled to a certain extent.
     
    #321     Jun 21, 2016
    Sweet Bobby likes this.
  2. DTB2

    DTB2

    #322     Jun 22, 2016
  3. Maverick74

    Maverick74

    May God be with you Sweet Bobby.
     
    #323     Jun 23, 2016
    CBC, Niten Doraku, Macca1 and 2 others like this.
  4. Thank you, Maverick!
     
    #324     Jun 23, 2016
  5. One trade today. I sold the 5 Aug 16 220/196.5 strangle for $1.79.

    The account is up around $900 for the day and $2,400 since April 5.

    Happy trading!

    Bobby
     
    #325     Jun 23, 2016
  6. Pekelo

    Pekelo

    So how is this move stressing the positions or the strategy?
     
    #326     Jun 24, 2016
  7. I probably should have listened to some of the warnings! Would anyone care to guess on how much the account has lost so far?
     
    #327     Jun 24, 2016
  8. Maverick74

    Maverick74

    I'll take a stab. I doubt it's "that" bad all things considered. We've had the vix spike to 90 before and in 2008 ES dropped 60% vs the 5% last night. I'll say you gave back all your gains plus some more. Let's say you dropped 4k today and your net overall is down 1500.
     
    #328     Jun 24, 2016
    i960 and Sweet Bobby like this.
  9. Maverick74

    Maverick74

    I mean the VIX is only at 22 right now, you may even be flat overall.
     
    #329     Jun 24, 2016
  10. i960

    i960

    I show the strangle at around 3.10 or so right now. Don't know what it was at the open - but the lack of market freak out on cash open surely helped save some of your ass. If it went the other way with a continual sell off after - or worse, ES hammering the 1999 limit down all night and then blowing out to the downside it definitely would have been worse.
     
    #330     Jun 24, 2016