Karen the Supertrader - TastyTrade Hybrid Experiment

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

  1. Maverick74

    Maverick74

    This is a terrible way to analyze risk. I hope some of the readers of this thread are learning from this.
     
    #551     Aug 25, 2016
  2. Maverick74

    Maverick74

    Correct. After half the pit blew out in 1987 the ones that remained "demanded" a higher risk premium to sell the downside.
     
    #552     Aug 25, 2016
  3. newwurldmn

    newwurldmn

    So the key in selling vol is understanding what the risk premia is and if it is unreasonable or not and if it is unreasonable your ability to carry that premium vs the general market.
     
    #553     Aug 25, 2016
  4. atrp2biz

    atrp2biz

    I'm selling protection at a price higher than the realized cost of providing that protection over the long-term. This doesn't sound like a terrible risk proposition to me.
     
    #554     Aug 25, 2016
    Sweet Bobby likes this.
  5. i960

    i960

    Such wow, amazing! I guess we should all just start doing that because there's no embedded risk whatsoever and the markets love handing out free money to those willing to get aboard such a no brainer bet?
     
    #555     Aug 25, 2016
  6. atrp2biz

    atrp2biz

    I don't recall saying realized risk will be zero.
     
    #556     Aug 25, 2016
  7. Maverick74

    Maverick74

    That is actually not what you are doing and I suspect you don't understand the math behind your statement.
     
    #557     Aug 25, 2016
  8. atrp2biz

    atrp2biz

    Ok. Scratch price/cost and replace with vol. Just trying to say things in a different way vs repeating over and over that IV > HV. But it doesn't matter. We clearly have different trading personalities and one has to stay within their personality in this business.
     
    #558     Aug 25, 2016
  9. atrp2biz

    atrp2biz

    I guess I should just be happy that people are generally adverse to selling premium.
     
    #559     Aug 25, 2016
    Sweet Bobby likes this.
  10. Maverick74

    Maverick74

    This is mathematically incorrect. Have you taken any statistics classes? What you are saying and what you mean to say and what you are implying are all categorically false.
     
    #560     Aug 25, 2016