OK,its a stand alone strategy that COULD be portfolio insurance. You can see how the title is confusing... ok
But I am insuring the portfolio against down-side tail risk. The cool thing is I can actually profit from the insurance, and the insurance doesn’t create a draw against the account performance. So I’m prepared for a drop, but still chugging along making profits in an upward market. Pretty cool, huh? The most significant risk that I have is a slow grind down market, but I have very specific trades to implement if that happens.
So Des unblocked me again yesterday so that I could see a few of his sissy jabs, but he has now blocked me again! Also, he has had the mods close the other thread! I think the boy may be bipolar. I’ve been around a few psychotics like him. Please tell me that y’all see him for the nut that he is? And as far as I know, he has never shared one of his proprietary trades! Not sure why so many of you buy into his bullshit. Is it because he tries to speak in terms that you do t understand, so you just assume he’s smart? He’s a dingleberry in the ass of trading. Nothing more!
You are long tails. You’re not insuring anything. You don’t have a portfolio to insure or at least haven’t mentioned it.
Thank you for your coaching. Most of the time you owned/longed left tails to protect your put-writes, occasionally caught a black swan and profited handsomely. Good for you. I have been looking for tail protection since 2013 when I started. Unfortunately protections are not free and I am unwilling to give up profits for protection. I should hunt for black swans instead. Thank you for giving me some ideas.
Some people just buy the hedge outright. I'm a greedy bastard, who always shops the sales. Ideally, your long puts are in the same expiration as your short puts. I first enter then diagonally, and then buy my replacement puts at a later date and at a better price. The logical question is, "what if you're never able to buy those replacement puts if the market goes against you?" I never bought the replacements in February and March and I never needed to! Worked beautifully!
Just remember this graphic regarding negative theta from Ron's course. It's fake. It's all fake! It does not and will not create negative drag on the portfolio. Des Poopy fails to understand this concept, and he's not open to learning.
Now that I have conquered and obliterated Poopy Dest and the rest of the detractors, maybe some actual two-way learning can happen in this thread. Is there hope for humanity?
I have a few questions: Why is Booby down on the year on the $36K account? Why is Booby trading less than $40K? Why does Booby think his decay has thousands of dollars in var? Why does he insist he has zero decay?