The Beauty of Options - Portfolio Insurance at a Discount

Discussion in 'Options' started by Sweet Bobby, Jun 19, 2020.

  1. ironchef

    ironchef

    Interesting comments.

    I have some DOTM options and recently their prices were all over the place, not making any sense (BSM wise) or tied to underlying prices. Didn't auto stop loss, decided the best thing to do was just let them settled down before took any action.
     
    #421     Jul 5, 2020
    guru likes this.
  2. By the way, for those of you saying that is this an overall portfolio, or just portfolio insurance for other trades/investments, let me just say this. Do insurance company's make money? Hello? Yes. This portfolio is an insurance company during normal market conditions. It is also a policy holder when all hell breaks lose. It's a pretty good situation for the overall portfolio.

    I'm really amazed that some of you made it through kindergarten graduation. You did make it through kindergarten, right?
     
    #422     Jul 5, 2020
  3. destriero

    destriero

    Booby, portfolio insurance is an overlay. A vol-overlay. Not a janky one lot account that wouldn't buy a Model 3 Tesla.

    AIG.
     
    #423     Jul 5, 2020
  4. destriero

    destriero

    Booby wins.
    87EED472-1719-48B3-B6B0-E5E68B0139DC.jpeg
     
    #424     Jul 5, 2020
  5. ironchef

    ironchef

    I am one that didn't make it through kindergarten.

    No matter how hard I tried I couldn't make your portfolio insurance worked (for SPY), going back 25 years.
     
    #425     Jul 5, 2020
  6. deltaf0rce

    deltaf0rce

    Without taking sides, I see dest having provided a lot of real trades over time and Bobby showing a single strategy, and not going to comment on his strategy other than it looks overly complicated. But I don’t think Bobby wins in a competition . I just don’t see it happening.
     
    #426     Jul 5, 2020
  7. I am not surprised. You have very limited information.
     
    #427     Jul 5, 2020
  8. I beat him once when he said I didn’t have on the positions in my account. I beat him twice when he rescinded his challenge. He’s a pussy.
     
    #428     Jul 5, 2020
  9. mukoh

    mukoh

    #429     Jul 5, 2020
  10. ironchef

    ironchef

    Thank you for reposting it.
     
    #430     Jul 6, 2020