Thursday, May 20, 2010

Re: [TheOptionClub.com] GS TRADE [was:How do you manage your Vega?]

 

Ricky ... it is sometimes difficult to see the wood for the trees ... particularily when it is complicated by the nuances of real-world trading .... but the framework is relatively simple ... in that the objective with this kind of trading is to simply apply sensible risk management to limited risk / theta positive trades ... Michael has demonstrated this on many occaisons, but I am not certain whether he does any personal mentoring .... the only option educator that I am aware of that teaches this kind of trading [along with position dissection] is Charles Cottle ... Cheers, James

--- In OptionClub@yahoogroups.com, Ricky Jimenez <rickyjim@...> wrote:
>
> On Wed, 19 May 2010 22:46:27 -0500, "mcatolico"
> <mcatolico@...> wrote:
>
> >Thanks james. You said it much better than i.
> >
> >-----Original Message-----
> >From: JP
> ><...>
> >I think you may be looking too hard to find the secret sauce [or algorithm]
> >and it may be easier to try and develop a simple framwork to understand this
> >type of trading.
> >
> Simple framework for your kind of trading? Pleeeaze. Just knowing
> the bare essentials is not enough. I am curious why I have never read
> about the method. Do you know many people who operate in a similiar
> way? If I were to try it myself, certainly paper money for the first
> few months, I would sell a small amount of ATM premium every day using
> the same play each time, perhaps a single IC or IB and do the
> necessary flattening and buying the now OTM shorts during expiration
> week. Have you tried or considered such a semi-mechanical approach?
> The one criticism of the trying to center the entire trade around the
> current ATM, that occurs to me, is why bother so hard with these
> volatile stocks since you know, very well that the chances of it
> staying put are very low?.
>

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