Karen the Supertrader - TastyTrade Hybrid Experiment

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

  1. newwurldmn

    newwurldmn

    You definitely don't want to be short wings if you know a drop is coming. No amount of short delta will be enough to hedge your risk.
     
    #521     Aug 24, 2016
  2. I successfully navigated Brexit. I look forward to navigating around a huge drop in the market.
     
    #522     Aug 24, 2016
  3. i960

    i960

    You "successfully navigated" Brexit only because ES gave you an out on the morning of 6/24 right after Brexit - so don't kid yourself.
     
    #523     Aug 24, 2016
    sysdevel99 likes this.
  4. As I said, I successfully navigated Brexit. I'm sure you did too, classy man.
     
    #524     Aug 25, 2016
  5. Maverick74

    Maverick74

    Bobby, short deltas don't hedge against market drops. Only long gamma does. All the short deltas do is spot you a few bucks at the start.
     
    #525     Aug 25, 2016
    i960 and Sweet Bobby like this.
  6. atrp2biz

    atrp2biz

    Short delta, flat gamma works.
     
    #526     Aug 25, 2016
  7. Maverick74

    Maverick74

    So be short ES futures. Any non-linear short exposure is going to kill you. There is no way around that.
     
    #527     Aug 25, 2016
  8. atrp2biz

    atrp2biz

    I don't know if it's gonna kill you.

    I try to manage my delta/gamma to break even in a gap down of 100 on the ES (vega adjusted). If it blows past 100, so be it--an insurance company has to pay out once in a while. The risk of gapping to the upside is another story which would benefit my buy-and-hold-forever equity portfolio.
     
    Last edited: Aug 25, 2016
    #528     Aug 25, 2016
  9. Maverick74

    Maverick74

    Well, the "so be it" part took a lot of guys out in 2008. Funny you should mention insurance companies since many of those that did blow out in 2008, that is what they are doing now, selling life insurance. LOL.

    And FYI, if the ES gaps down 100 the bid/offer spreads are going to part like the Red Sea.
     
    #529     Aug 25, 2016
  10. Most of the people on 'Wall Street' are not actual traders -- but rather Salesmen :confused::fistbump: -- selling and convincing random people to buy their products and offerings.

    Nearly all the wall street-themed movies out there...that's what they are doing in it...selling and convincing random people.
    I doubt, not that many of them...can actually trade/grow their own private small accounts into large one's.

    Everybody out there has a commision mentality -- make the kill/sale...then move onto a bigger fish.
    It's not my problem if the wheels fall off the car afterwards -- that's your, or someone else's, problem now.
     
    Last edited: Aug 25, 2016
    #530     Aug 25, 2016