He has a set of criteria. For example, time window prior to expiration, vol, front and back iV, etc.
From: OptionClub@yahoogro
Sent: Monday, March 29, 2010 4:47 AM
To: OptionClub@yahoogro
Subject: Re: [TheOptionClub.
I've tried their services at one point as well. I was more interested in learning their criteria for entry, but they never really provided it. Is this still the case? Has anyone else experienced the same?
Chuck
On Thu, Mar 25, 2010 at 2:56 PM, Bill Fletcher <wnfletcher@hotmail.
Dan’s method is to sell the near month (actually, if you enter before expiration of a month, you are going to sell the month after) and buy one month further out. Get in and get out. The theory is that the longer you leave it on the longer you have to be wrong. He calls there “guerilla calendars”. The other method is to sell the near month and buy the month two or three out. Then roll the near month as it approaches expiration. These he calls “campaign” calendars. Being a control freak I tend to favor guerillas. As these work well when the underlying is going nowhere fast, this kind of makes sense. My crystal ball gets real foggy when I go out very far. Of course, if the market moves you can take the long off, or turn it into another beast, I guess.
From: OptionClub@yahoogro
Sent: Wednesday, March 24, 2010 11:27 PM
To: OptionClub@yahoogro
Subject: Re: [TheOptionClub.
What do you mean by "campaign"? I subscribed to their calendars for ~2 months. Overall, I felt profit potential of their trades were a bit conservative (in terms of cents per option) relative to commissions.
On Wed, Mar 24, 2010 at 1:59 PM, William Fletcher <wnfletcher@hotmail.
I have also noticed that Red Options doesn't follow Dan Sheridan's guidelines on vol and price. I'm not saying that this is right or wrong - just that if one is trying to develop a system that makes logical sense (front vol vs back vol etc.) it is a bit confusing. Also, they tend to "campaign" calendars, which doesn't fit my desire to get in, steal the money, then get out.
To: OptionClub@yahoogro
From: vikas.basantani@
Date: Wed, 24 Mar 2010 12:34:24 +1100
Subject: Re: [TheOptionClub.
Hi Joules, please do not get me wrong but if you are able to decide (on your own) if a trade requires an adjustment, then why not even initiate and close the trades yourself? Why waste even $20 a month on that service?
I apologize if I sound rude but please do think about what I am trying to convey...
Happy trading!!!
Cheers Vikas
On Wed, Mar 24, 2010 at 6:22 AM, Joules <jouless360@yahoo.
Ben:
Thanks for you input...I called RedOption and you are correct. I was told that I can adjust my own trades and just notify them to take that particular trade off of the autotrade system. They will continue to autotrade future trades irrespective of the one that I manually adjusted.
So I decided to keep RedOption and if a trade needs adjusting during the month...then I will take it off autotrade and manually trade it to the end. This will give me the best of both worlds for $20 a month...as they are watching to initiate the trade and then I can evaluate it and decide if an adjustment is needed. If not...then they will handle the entire trade. I think that is a great compromise.
Thanks,
Joules
--- In OptionClub@yahoogro
>
> Ben:
>
> I was waiting for them to adjust....when they never did ..it was too late as it was way outside of the breakevens. The passing of this bogus health care bill...may bring me in the money again.
>
> Joules
>
> --- In OptionClub@yahoogro
> >
> > Hi Joules,
> >
> > Just because you've signed up to auto trade this position, there's nothing to keep YOU from adjusting the trade, especially knowing that Red Option will NOT be adjusting it. Remember "Hoping for a particular market move to occur" is NOT a trading strategy. The whole point of trading options is that you have tremendous flexibility to adjust a loosing trade to either make it a winner or at least make it loose less (than if you did nothing).
> >
> > Good luck,
> > Ben
> >
> >
> > --- In OptionClub@yahoogro
> > >
> > > Chis:
> > >
> > > Thanks for the clarification. I assumed since they were trading for us ....they would also make adjustments and manage for us as well. When I meant trade like Dan Sheridan...that is really what I was referring to. I figured REDOPTION would do that for me. I mean...any of us can put on a trade and just sit and watch it. Its the adjustments at the right time that make the trader a winner. I have learned a lot in the past few months and if I were able to sit and watch the market daily, I would continue to do my own trading.
> > >
> > > Well...I am at the mercy of the market now with the trade they put on. The IWM is starting to pull in and if it gets below 65, I will be in the money again. Its a March quarterly...
> > >
> > > Thanks,
> > > Joules
> > >
> > >
> > > --- In OptionClub@yahoogro
> > > >
> > > > Joules,
> > > >
> > > > The first point I need to make is that you assumed everyone trades like
> > > > Dan Sheridan. They don't. Dan Sheridan trades like Dan Sheridan, and
> > > > that is where it stops. We are all wired a little different from each
> > > > other and respond to situations in our own unique way. On top of that,
> > > > the guys at TOS don't subscribe to the concept of adjusting trades.
> > > > They put 'em on. They take 'em off. They manage an inventory of
> > > > trades, not individual positions.
> > > >
> > > > The second point I need to make is that you're not getting professionals
> > > > managing anything for you with an autotrade service. You get what you
> > > > pay for and $20.00 per month only goes so far. Autotrade services are
> > > > born from the newsletter publishing industry. They publish trades. You
> > > > sign a power of attorney that instructs your broker to execute whatever
> > > > trades they publish. The publisher of those trades has no idea what's
> > > > happening inside of your account, or whether the trades they publish are
> > > > appropriate for your particular situation or risk tolerance. Your
> > > > experience is a case in point. You were uncomfortable with how the
> > > > trade was unfolding and they did nothing. Why? Because they're not
> > > > managing your account. They're publishing trades. Big difference.
> > > >
> > > > Christopher Smith
> > > > TheOptionClub.
> > > >
> > > > --- In OptionClub@yahoogro
> > > > >
> > > > > Well....I have been so busy at work that I could not manage my trades
> > > > ontime anymore. I was doing ok...but I thought....wow.
> > > > I can have professionals watching it for me every day. So I signed up
> > > > for autotrade with REDOPTION.
> > > > >
> > > > > So needless to say...you get what you pay for...lol They put a double
> > > > diagonal on the IWM for me and let it run up and past the breakevens. I
> > > > was watching the trade and waiting for a Dan Sheridan type of
> > > > adjustment.Well.
> > > > >
> > > > > I finally emailed REDOPTION and asked...What is Frank doing? ( a play
> > > > on words as they have a daily advisory called ..What is Frank Thinking?)
> > > > >
> > > > > Anyway, they answered and said that they do not adjust trades an put
> > > > the customers at more risk..... lol...I could have put on that trade and
> > > > went to sleep for 20 days for nothing.
> > > > >
> > > > > So....I don't mind paying more for an autotrade company that manages
> > > > trades like Dan Sheridan would. Besides...I am down $1000 bucks now
> > > > because of REDOPTIONS do nothing attitude. I could have spent that in
> > > > monthly management fess.
> > > > >
> > > > > Does anyone know of such an autotrade company that can do TOS that has
> > > > a decent track record?..and of course does adjustments when it comes to
> > > > the breakevens.
> > > > >
> > > > > Thanks,
> > > > > Joules
> > > > >
> > > >
> > >
> >
>
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