Wednesday, July 22, 2009

RE: [TheOptionClub.com] jellyrolls and boxes

 

With all the technology out there it’s really archaic to calculate boxes and rolls. Yet, I have a fondness for these exercises. The point is to 1) look at and understand synthetics to see if there are possible price opportunities (i.e. arbitrage which is rare but does occasionally pop up for a moment or two) and 2) get acclimated to how option relationships work and evolve. This latter is where the real training can be beneficial in the long run. It’s sort of like learning and practicing very fundamental strength and endurance training while preparing for say a triathalon. If you can continuously and comfortably flip the calculations of boxes around in your head you will be gaining very deep understanding of price movement and price relationships. I am still fond of looking at butterflies across maybe +/- 5 strikes on all the instruments I trade.  Nothing gives me a better feel of how volatility is changing and that info can provide all kinds of tradable opportunities.

 

From: OptionClub@yahoogroups.com [mailto:OptionClub@yahoogroups.com] On Behalf Of James Fink
Sent: Wednesday, July 22, 2009 9:58 AM
To: OptionClub@yahoogroups.com
Subject: Re: [TheOptionClub.com] jellyrolls and boxes

 




Opinions can vary, but I think jelly rolls are best left to market makers.

 

From: David Steele <dsteele_24@yahoo.com>
To: Option club <OptionClub@yahoogroups.com>
Sent: Tuesday, July 21, 2009 5:39:47 PM
Subject: [TheOptionClub.com] jellyrolls and boxes

 

does anybody used jellyrolls and boxes to determine which is the best calendar to used(put or call calendar or vertical(bull call, bull put, bear call , bear put) for boxes. what difference does it make using these techniques. i have watch some of Dan Sheridians videos and  Ron Ianieri videos and they used these techniques to determine which is best to used. are these just market maker techniques, and does it matter if regular retail traders use these for finding the best strategy to used.

 





__._,_.___
The goal of TheOptionClub is to provide a forum for members to work together for the purpose of furthering our individual understanding option trading.  All messages and postings, and any materials circulated are provided for discussion and educational purposes only.  No statement contained in any materials from TheOptionClub should be considered a recommendation to buy or sell a security or to provide investment, legal or tax advice.  All investors are encouraged to consult a qualified professional before trading in any security.  Stock and option trading involves risk and is not suitable for most people.  There is no guarantee that any information provided is accurate and, may in fact, be wrong.  It is understood that the participants in TheOptionClub have varying backgrounds and degrees of experience in option trading, and that regardless of experience each member is considered a student.  As such, any information distributed through TheOptionClub should be considered with a critical mind and not relied upon as an authoritative source.

To unsubscribe from TheOptionClub, send an email to:
OptionClub-unsubscribe@yahoogroups.com
Recent Activity
Visit Your Group
Give Back

Yahoo! for Good

Get inspired

by a good cause.

Y! Toolbar

Get it Free!

easy 1-click access

to your groups.

Yahoo! Groups

Start a group

in 3 easy steps.

Connect with others.

.

__,_._,___
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)