LJM Preservation and Growth Fund, collapsed by 82 percent! (WTF?)

Discussion in 'Wall St. News' started by prc117f, Feb 8, 2018.

  1. prc117f

    prc117f

    I sold some OTM SPY puts for 2.10 bucks a pop with 2 days of expiration. way above typical prices. all worthless now but imagine being able to sell these things every 2-3 days for those premiums. :)
     
    #61     Feb 14, 2018
  2. RedDuke

    RedDuke

    Today's morning was perfect example when to sell puts
     
    #62     Feb 14, 2018
  3. No such thing as free lunch though. If volatility stays elevated, it's also pricing a big move. Could still end up in the money. Do you sell options naked or in a spread?
     
    #63     Feb 14, 2018
    KevinD likes this.
  4. Mugono

    Mugono

    May I ask, what was the ATM straddle pricing at around the time OTM 1000 strike was trading around $9. Rough % of stock price is more than sufficient

    TIA

    PS input from all welcome.
     
    #64     Feb 15, 2018
  5. RedDuke

    RedDuke

    No idea. You can purchase data directly from CME datamine to check this out. It is cheap if you only need few days.
     
    #65     Feb 15, 2018
    Mugono likes this.
  6. Or just look at similar contracts that are still trading and work backwards on what an expired contract for that week would have roughly been.
     
    #66     Feb 15, 2018
  7. RedDuke

    RedDuke

    Will not work that way, all expectations and models went out of the window that night. No one ever saw anything like this.
     
    #67     Feb 15, 2018
    Mugono likes this.
  8. What? I know nobody expected the plunge.

    I'm talking about trying to figure out past options pricing of an expired contract at a specific point in time without subscribing to the service you suggested with historical pricing data. You can look at options pricing of contracts at strikes that are still trading today, extrapolate back to the time/date of the plunge, and based on the price of those contracts at the time and assuming even higher implied volatility of options for that week's expiration (but of course with lower theta), to then get a rough estimate of what prices were at the time of the plunge for those expired contracts.
     
    #68     Feb 15, 2018
  9. prc117f

    prc117f

    The funny thing is I pretty much wound down all my portfolios in Janurary and was p
    I always hedge. I like to define my risk level. The problem with companies like LJM is they did not hedge worth shit so they had no defined risk level and were greedy wanting to collect the entire thing. like they say bull and bears make money, pigs get slaughtered.
     
    #69     Feb 15, 2018
  10. Is their portfolio public?
     
    #70     Feb 15, 2018