Hi Charles,
I am not one of your paid subscribers - however I did read your CWS book (got the book from TOS in 2003 when I opened an account with them) and portions of OTTHR that are publicly available. I also saw a couple of videos from your website. I love and actually understand your explanations!! Took me a while, but I get it now, at least the theory part of it.
Fascinating stuff to say the least ...
Just wanted to drop you a note and say thank you.
Couple of things:
1. When and how do you decide when to do an adjustment? What is your trigger?
Say I I bought a put vertical spread 105/100 when an underlying was at 107. Three scenarios:
a) Underlying goes to 109.
b) Underlying goes to 103 (no adjustment made) and then it goes to 108
c) Underlying goes to 103 (adjustment made) and then it goes to 99
One of the adjustment timing methodology used (by our own Michael Catalico and others) is by using the Expected Move (using the IV of ATM options and find the SD of the movement). So I want to know if you preach something different.
I am not one of your paid subscribers - however I did read your CWS book (got the book from TOS in 2003 when I opened an account with them) and portions of OTTHR that are publicly available. I also saw a couple of videos from your website. I love and actually understand your explanations!
Fascinating stuff to say the least ...
Just wanted to drop you a note and say thank you.
Couple of things:
1. When and how do you decide when to do an adjustment? What is your trigger?
Say I I bought a put vertical spread 105/100 when an underlying was at 107. Three scenarios:
a) Underlying goes to 109.
b) Underlying goes to 103 (no adjustment made) and then it goes to 108
c) Underlying goes to 103 (adjustment made) and then it goes to 99
One of the adjustment timing methodology used (by our own Michael Catalico and others) is by using the Expected Move (using the IV of ATM options and find the SD of the movement). So I want to know if you preach something different.
The biggest impediment in signing up for your courses (other than the obvious $$$), is the practicality of using the techniques with commissions and slippage for a retail trader like me (btw, I am not a full-time trader - fortunately or unfortunately is debatable ;-)).
2. You may not want to answer this question, but let me ask anyway. What is the algorithm for figuring out dissection (I can do it manually) - for example, an elongated condor is made up of three or more flies? How do you tell a computer to do that? Just curious as a "computer guy" ... as I said, if this is proprietary and you don't want to disclose, I completely understand.
Thanks!
Regards,
Murthy
2. You may not want to answer this question, but let me ask anyway. What is the algorithm for figuring out dissection (I can do it manually) - for example, an elongated condor is made up of three or more flies? How do you tell a computer to do that? Just curious as a "computer guy" ... as I said, if this is proprietary and you don't want to disclose, I completely understand.
Thanks!
Regards,
Murthy
On Tue, Sep 8, 2009 at 1:47 PM, charlescottle@att.net <charles@riskdoctor.com > wrote:
> Chris, in the future, I hope you can suggest to the speakers, toActually `Position Dissection' otherwise referred to as "breaking a position down" is a concept that many people are happy to learn about. I certainly did not invent the concept as I banged heads with countless floor traders in the 80s and 90s in comparing positions and tracking trades. I might be the first and only writer on the subject, so far, but the purpose of Position Dissection is to get everyone on the same page regarding an option position as it evolves, via trade adjustment, and have a common format so that the esoteric nuances of the trade loses fewer followers of the discussion.
> explain their modifications by showing how they change the trade's
> expiration diagram. I think Charles assumed the viewers had greater
> vizualization capabilities than most of us have.
>
I am certainly aware that, when first presented, people go "WO Boy", but few would argue that traders need to be aware of the concepts to take their trading further. Chris is very aware that we would lose a few viewers and that there would be Deer in the headlights but we wanted to plant the seed and I think we achieved that. Since the recordings will always be available, those not ready now can come back when they are ready. I am happy to continue the discussion with anyone who gravitates to this practice and perfectly understand that Position Dissection and Options, for that matter, are not for everyone.
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