Thank you. I appreciate you taking the time to explain. It will be on my to do list to look carefully at what you commented.
Fairly speaking, Dest has a valid point. The structure designed by Sweet Bobby, requires layers on layers of positions, and if dissected properly, it might contain many redundant positions that are pretty much counter balancing each other and not helping the net portfolio profile. 0.10$ slippage on each execution multiplied by average 180 positions in and out every 2 months, and the costs add up pretty fast.
Dest is clueless as to the particulars of my strategy and is not man enough to unblock me so that I can see his comments!
My cost for the hedge of 57 short puts and 130 or so long puts so far is around $1,900. I'm happy with that and soon that number will be below zero. How does Sweet Bobby do it? One amazing dude!
I can’t see dorky dest either, but I’m sensing he’s destroying your strategy with its synthetic counter-part, in a witty exotic way lol
of course if you word it that way it sounds horrible.. but what if those layers of positions are only redundant “x%” of the time? Also the commission argument is another red herring.
He's short the diagonal/backspreaded. It's mind-fukcing dumb. Yes, I can dissect it as I went to high school, but it's pointless. The guy is a train wreck. He's the guy looking to short 50K notional in calls and sells 1000 of the 10 wide verts in lieu of 100 of the 100 wide.
This post really gets ones pondering. I wonder often if consuming too much øptionality knowledge could hurt ones abilities to actually trade? A lot of people get caught up in 7th moment distributions but can't mint coinage. Maybe less is more, for some? I guess it all depends. You have desty who can trade very well plus is an encyclopedia for anything øptionality. But then you got the dude across the street selling cash secured puts monthly and banking greenbacks. It all depends.
Hello Sigma, You've been following my strategy for some time. How many times have the options ”gurus” predepicted the demise of Sweet Bobby? Yet, Sweet Bobby continues to bank the bucks! They lack the guts to trade like I do. I set my risks and go on about life. You know how this story ends. SB
Bob, you fail to realize your strat will IMPLODE... eventually. In the long term you are doomed bro! Whatever that means lol