The Beauty of Options - Portfolio Insurance at a Discount

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

  1. destriero

    destriero

    This thread is cartoonish. The dude disappears while losing. Adds insult to injury and shorts gamma just as the mkt prints an intraday bear reversal.
     
    #471     Jul 7, 2020
  2. destriero

    destriero

     
    #472     Jul 7, 2020
  3. destriero

    destriero

    ZERO THETAZ WEEK!
     
    #473     Jul 7, 2020
  4. ironchef

    ironchef

    Thank you, I think. o_O It will be a long time before I can understand what you wrote. :(

    I am in the minor league. My niche is straight cash secured/covered or buy stand alone calls/puts, counting on directional and convexity to keep me in the black. It worked. The problem is I have very lumpy returns. So I have been searching to find a way to smooth out the occasional big drops like Feb-Apr 2018, Dec 2018, Mar 2020.....

    Back to the drawing board.

    Best regards,
     
    Last edited: Jul 7, 2020
    #474     Jul 7, 2020
  5. Stick around, Ironchef! The answer is here.
     
    #475     Jul 8, 2020
  6. Great day in the markets. I was busy scalping NQ and MNQ. I love the micros because you can scalp against existing deltas a lot easier.

    Here's the risk profile of the misunderstood trade by those such as Poopy Dest. He doesn't realize that this is a great complement to my hedge as an income trade. So far, so good!

    stuff.JPG
     
    #476     Jul 8, 2020
  7. Here are two of my income structures, and as you can see I've got them layered over each other which widens the big profit tent. I'm not playing for the lottery hit in those tents, but rather the profit from the upper expiration line if the market continues to grind higher. I place these trades on down days in the market when hopefully the VIX pops a bit.

    two.JPG
     
    #477     Jul 8, 2020
  8. guru

    guru

    #478     Jul 8, 2020
    Atikon likes this.
  9. Absolutely correct, Guru. I create these to give me profits if the market moves up. They show significant (though defined) downside risk, but the risk is fully absorbed by my hedges.

    I have had 3 of these structures on since April 8, 2020 and I now have only two remaining. I took some profits on the first one. I may close the second one shortly.
     
    #479     Jul 8, 2020
    guru likes this.
  10. destriero

    destriero

    lol to the blended position... best case? $3K. Worst case? ($40K). What a joke.
     
    #480     Jul 9, 2020