Long-scalping equity options against time decay and market drift

Discussion in 'Journals' started by fullautotrading, Jan 31, 2022.

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  1. Overnight

    Overnight

    At this point is is fondling, naughty man. :)
     
    #171     Nov 1, 2022
    fullautotrading likes this.
  2. LOL, I learn so much new English and new words from your posts :)
     
    #172     Nov 1, 2022
  3. For detail on executions, here is the excel file (Excel or the free WPS) with All executions (1168 fills at the moment, unexecuted orders not included) at this very moment ($ 342,157.57 including all commissions and spread to close all positions):

    upload_2022-11-1_23-51-54.png

    Total commissions: 19844.99, Total elapsed time: 274.39 (solar) days
    Total volume traded: 14377, Total value traded: 4713971.60
     
    #173     Nov 1, 2022
    Sekiyo likes this.
  4. It just occurred to me (better late than never) that it may be handy for option selection to display the Delta / Theta ratio (or the reciprocal). So I just added it:

    upload_2022-11-2_0-40-37.png

    ES FOP 20220831 2600 P GLOBEX 50 → ES FOP 20221021 2870 P GLOBEX 50→ ES FOP 20221230 2500 P GLOBEX 50
     
    Last edited: Nov 1, 2022
    #174     Nov 1, 2022
  5. The following bit of magic is in honor of Overnight's FOPs OCD :)

    [and keep in mind at this very hour the spread is monstrous:)]


    upload_2022-11-2_1-20-49.png
    ES FOP 20230616 2000 P GLOBEX 50 E-mini S&P 500 [ESM3 P2000, 561102564, mult: 50]

    upload_2022-11-2_1-21-3.png
    ES FOP 20230616 2500 P GLOBEX 50 E-mini S&P 500 [ESM3 P2500, 495666632, mult: 50]

    upload_2022-11-2_1-21-14.png
    ES FOP 20230616 3000 P GLOBEX 50 E-mini S&P 500 [ESM3 P3000, 495665910, mult: 50]

    upload_2022-11-2_1-26-18.png
    ES FOP 20230818 4000 P GLOBEX 50 E-mini S&P 500 [EW3Q3 P4000, 574680266, mult: 50]
     
    #175     Nov 1, 2022
  6. Overnight

    Overnight

    The Blitzkrieg FOP song is working! Woooo!

    Are you properly positioned for the crazy the FOMC may introduce tomorrow followed by NFP Friday, based on your historical models?
     
    #176     Nov 1, 2022
    fullautotrading likes this.
  7. stamo in una botte de fero, haha :)
     
    #177     Nov 1, 2022
  8. Overnight

    Overnight

    K, I guess that means you are. I am not good at languages other than English, and so I think you typed "I have an iron butt plug ready."

    I would not be a good translator for the President, teehee.
     
    #178     Nov 1, 2022
    fullautotrading likes this.
  9. LOL,
    well, the butt was not really involved in the original (dialectal) expression, but you got the idea! :)
     
    #179     Nov 1, 2022
    Overnight likes this.
  10. Following Overnight's concern, it's time to do some "cleaning" and free margins for the next challenges.

    The "starting situation" is as follows:

    upload_2022-11-2_16-31-15.png

    upload_2022-11-2_16-31-27.png

    84.50% of funds used is a bit too uncomfortable, so let's reduce this figure.

    First of all, I am shutting down this layer, as the price is now low and the delta miserable:

    upload_2022-11-2_16-33-24.png

    so we get 81.6%.

    I am also shutting down this other layer, as the current position (50) and the delta are uncomfortable:

    upload_2022-11-2_16-39-3.png

    And this brings down the funds used to 69.4%.

    Same thing for this other layer:

    upload_2022-11-2_16-40-36.png

    and so we get to 57.4%.

    Finally, for this short leg of our "protective structures":

    I am going to activate algorithmic scalping/hedging trading instead of letting it with a fixed position so that the bot is free to hedge the position, if necessary:

    upload_2022-11-2_16-45-36.png
    ES FOP 20230616 3000 P GLOBEX 50 E-mini S&P 500 [ESM3 P3000, 495665910, mult: 50]

    (so you see now the red circle has a yellow border, to signify this position is being handled algorithmically)

    I am taking care of this one because of the relatively large delta (-11.46%) ad the fact that margin requirements may grow significantly (due to the relatively close strike).

    For now, that's all: we should be in good shape to survive :)
    (Should margins grow too much, we can "transfer" a few layers.)
     
    Last edited: Nov 2, 2022
    #180     Nov 2, 2022
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