I'll reveal the post as it was one of the most absurd posts I have ever read in the 4 years I have been on ET. I mean seriously, I'm not trying to be a dick here. I'm sure everyone will come out and say here comes mav again picking a fight, but seriously, this post by hers was so off the charts, I really think it shot her credibility. Here is what she said: "I have made money every month since I started trading except my first month where I lost $50. Last month I made 20K." I'm sorry, I have to call this shit out otherwise I can't live with myself. I mean who says shit like this? Maybe she was trying be funny and pass this off as a joke. But I'm thinking since she quickly deleted it, that is not the case. Either way, there it is. Donna, the ex-hippie from the 60's that makes money every single month trading. With that track record she must be managing 1 billion dollars by now. Hell Steve Cohen and James Simmons can't even make this boast. Unreal man, absolutely unreal.
He is not perfectly placing fair value. His vols are pretty much dead on. It's not hard to do. Vols have been pretty tight the last year and moves have been very predictable. In fact, there was a very comprehensive study done I believe at the University of Chicago showing what the ending vols turned out to be and what they were priced 30 days before. And I believe over 500 stocks, probably the sp 500, the vols were literally within 100 basis points of the actual. That is mind blowing when you think about it. Then when you factor in the spread the mm's make being about 100 to 300 basis points wide. That pretty much covers the margin for error. If I find that study I will post it. I believe one of the trader mags published it as well as the CBOE.
A week and a half ago when the RUT was around 766 (but it has been continuously breaking all time highs) and knocking on the door of my 780/790. I doubled up on 790/800 to get ready. Then it retreated south and I was left with -1x 780, -1x 790, +2x 800. I didn't like the way the technicals look going into what seems like an overall uptrend. I am usually a little bit more cautious around earnings season so I closed them out on the retreat for some nice tidy profit for APR. I usually close out earlier in earning seasons if it looks like it will threaten my shorts. Plus, I needd to free up margins for some earning plays
I just got through reading the last 30+ posts. Interesting discussions there. I've always mix and match credit/debit/multiple calendars etc. that I don't sweat much about any one. There are merits to both sides, as debit spreads don't tie up margins like credits do, and that allows you some flexibility to do something else. Mav, I've enjoyed many of your posts, but I think your last post about Donna was uncalled for.
Hybone, people either love me or hate me on ET. Those that love me usually do so because I really tell it like it is. I have nothing to sell so I really don't care what people think about me. I tell the truth and call a spade a spade. The people that hate me usually are the ones I go after. LOL. I'll say this though. The rhetoric I spew on here, I spew in person. I run a group in Chicago that is the largest of it's kind in the country and is growing stronger every month. The reason people come is because I don't bullshit people. Some people like that, some don't. But it's who I am. When someone tells me they never have a losing month trading options, I'm going to call that person on that. I have worked with some of the best traders in the country in both NY and Chicago. Our top trader at my firm is going to have 100 mil under management. And for someone to make this claim, well, I'm going to say something. Look, I don't know Donna from a hole in the wall. Maybe she really is the greatest trader that walked the earth. She has to be if that statement is true. But I play the odds, and the odds are, that statement is no where close to being accurate.
Maverick, Donna has said just about every which way, that she's MAKING MONEY. Your theories don't matter. Let it go already........
Has nothing to do with whether she is making money or not. And I am not preaching theory. Options are pretty straightforward.