The Beauty of Options - Portfolio Insurance at a Discount

Sweet Bobby · Jun 28, 2020

Now we wait on the cockroach to respond. Since Dest blocks me from viewing his responses to my thread, would someone be so kind to let me know if and when he responds? His dog may have COVID or some silly excuse I would imagine. He might actually surprise me!

Sweet Bobby · Jun 28, 2020

Trying to get into a fools head is difficult, especially when you are as intelligent as I am. Dest will say that I will go into the account and place these trades today so that they will be there.

Nope! I will show you all the time stamps of when these trades were actually placed. None will have been placed today I can assure you. Any other objections that you all think Coackroach Dest will throw up? Just let me know. Thanks envy for your contributions!

Sweet Bobby · Jun 28, 2020

I feel like a deer hunter in a tree stand hovering over a beautiful, luscious bed of dark green clover waiting for the mutant buck to gingerly wander into my trap! Here, Poopy, Poopy! Here, Poopy, Poopy!

Sweet Bobby · Jun 28, 2020

It kind of feels like a Christmas morning, doesn't it?

Sweet Bobby · Jun 28, 2020

I keep refreshing my screen, but nothing! Maybe Poopy Dest is giving his brother a bubble bath?

Sweet Bobby · Jun 28, 2020

Here's the new monitor I'm going to buy with Poopy Dest's money. I'm also going to frame his photo and keep it on my desk so that I can remember his ugly mug and what I don't want to become when I grow up! LOSER!!!

shh · Jun 28, 2020

ironchef said:
@destriero, I am not smart enough to understand what you wrote.

This I understand:

If @Sweet Bobby sells a put and then immediately executes a "hedge" using his ratio spread, it is just some combination spreads and I can't see how it could generate a guaranteed profit. It is similar to buying a stock, immediately executes a zero cost collar and expects to generate a profit.

His put selling is selective, the puts were sold only under certain conditions (according to @Sweet Bobby). The ratio spreads were also selective, they were executed only under certain conditions. There is no profit if both are done blindly and together. Until we know the selectivity, we really cannot say if his method has any merits.

This is not unlike your situation:

You make a living trading flies, but I lost my shirt trading flies. I can't say you fake it because I can't duplicate. But I make a living buying and selling stand alone calls and puts. You can't say I fake it because generally buying and selling calls/puts won't net a profit.

So @Sweet Bobby makes a good living selling puts and catching an occasional black swan. He disclosed his approach, it is testable. Whether it works or not I appreciate him sharing.

Best to you.
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I think Dest, VolSkewTrader and those who trade with specific edges do not prefer an all-season all-in approach. They are more selective in choosing what to trade and when to trade it. The initial skepticism about SweetBobby's methodology was a trade that is systematically put on every month regardless of the market conditions and prints money. Of course, later he elaborated that he applies some filtering mechanisms to enter/exit trades at more attractive prices. If you give this strategy to the pros, they will certainly improve it, for example, they will trade it more aggressively when term structure has a specific shape. Everyone needs the criticism of the pros in my opinion, it is really important to know when to avoid the market, when to capitalize more on the income portion of your trade and when to concentrate the bets on the left tail. It is also important to know if your money comes from the gamma or vega under what circumstance; then one can optimize the strikes. We are all here to learn.

Sweet Bobby · Jun 28, 2020

shh said:
I think Dest, VolSkewTrader and those who trade with specific edges do not prefer an all-season all-in approach. They are more selective in choosing what to trade and when to trade it. The initial skepticism about SweetBobby's methodology was a trade that is systematically put on every month regardless of the market conditions and prints money. Of course, later he elaborated that he applies some filtering mechanisms to enter/exit trades at more attractive prices. If you give this strategy to the pros, they will certainly improve it, for example, they will trade it more aggressively when term structure has a specific shape. Everyone needs the criticism of the pros in my opinion, it is really important to know when to avoid the market, when to capitalize more on the income portion of your trade and when to concentrate the bets on the left tail. It is also important to know if your money comes from the gamma or vega under what circumstance; then one can optimize the strikes. We are all here to learn.
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Criticism from the pros is one thing, but Poopy Dest is no pro. He won't even allow me to see his comments. And I do not blindly put this on each month. There are many variables that I consider before entering each of my trades. If X, then Y. It's a beautiful strategy, actually, but misunderstood by many a troll here in ET.

destriero · Jun 28, 2020

destriero · Jun 28, 2020

lol I've got to go back and read these posts. There are like 20 unanswered posts from SweetPedo. Seriously? Live in your head much?

The gist of his psychosis is that his 20 freak out posts would lead us to believe that his "(-)350 theta" position is in his production account. It's not. It's in his sim/paper money TDA account.

Sure, I'll bet you $1,000 that you are not holding the the larger, bear position in a real money account, but you'll have to set it up prior to Sunday ES open at 6pm ET.

I have taken SweetPedo off block.