Pabst's Blue Ribbon Trades

Discussion in 'Journals' started by Pa(b)st Prime, Mar 29, 2007.

  1. Right, June is marked to July. The time to sell gamma is to lock in gains, not as a repair strategy.

    There is nothing stating you MUST sell synthetic straddles on rallies[options > futures]. Simply that it's prudent to sell skew and strip vol INTO the edge. When you get 15 handles, sell a call. Se another 5 the next day? Sell another call. You will stand an excellent chance of replicating a short put at an huge premium to the natural put-mark. Need to get flat? Buy the natural put [short-call strike] and you're good to go with one trade.

    Don't do it if you're concerned it will increase trade-duration or unacceptably limit upside.
     
    #121     Apr 12, 2007
  2. Pabst could you tell us what your p&l is since beginning the journal..

    Thanks.

    :cool:
     
    #122     Apr 12, 2007
  3. Understood. Believe it or not I'm only underwater on 5 of my 20 corn. Beans are another story......
     
    #123     Apr 12, 2007
  4. I'm going to sell 750 May calls in beans to-morrow and yea I am trying to "damage control" the Beans. IMHO this stuff is going to revisit all these 730-760 and 350-370 prices.
     
    #124     Apr 12, 2007
  5. Yea I'm curious also. I've had some massive swings.
     
    #125     Apr 12, 2007
  6. BTW: Thanks. Again.

    I'm learning from everything you say.....
     
    #126     Apr 12, 2007
  7. Including all open positions coming in to the journal and present open positions my trade p/l has been after commish +10,283 (it's obviously all Bonds although I was shocked that I've lost almost 4k trading around those Bonds. I'd forgot about a couple of UGLY adds.)

    I found 2 Cotton trades and 2 Corn trades on my sheets that aren't in the journal. They were inconsequential (except one was a swap of 5 CK for 5 CN)
     
    #127     Apr 12, 2007
  8. I can't help dwelling on this post.

    I'd bet I've dropped 20k (I haven't a clue as to what my "open" equity was Sunday night) in Corn and Beans since you wrote this....

    Also: Not to keep stroking you BUT because of your options expertise one tends to forget that you've had some awfully good "wise guy" calls in the indices the past couple of years. Unlike many options theorists you have solid directional ideas also.
     
    #128     Apr 12, 2007
  9. You're referring to those three or four short/long index calls within a handle of the peak/trough? ;)
     
    #129     Apr 12, 2007
  10. Exactly. A couple were good for 15 SPX points the very next day.
     
    #130     Apr 12, 2007