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

 

Ricky .. the point of a simple example is to provide some form of conceptual framework that you can use to develop an understanding of more complex trades ... it acts as a playbook that you can refer to at different stages of trade evolution .... in this case as you approach expiry you are trying to convert a wingspread into a strangle ... knowing this you can make the adjustment in whichever way you want to achieve the end result ... then when you know what adjustment you want to make, you can consider if there is a more efficient way of achieving this, say by using fewer contracts ... much of this knowledge comes from a combination of trading experience, a deep understanding of your trade [position dissection] and a knowledege of synthetic alternatives .... how you getting on with Cottle's book?

Cheers
James

> >
> I understand the simple example you are giving, James, but I don't
> find it helpful in understanding how Michael chose the particular way
> he converted the zigzag position to a strangle. As you pointed out
> previously, the task can be done with 4 contracts instead of the 14
> Michael used.
>

__._,_.___

Reply to sender | Reply to group | Reply via web post | Start a New Topic

Messages in this topic (179)

Recent Activity:

• New Members 8
• New Files 4

Visit Your Group

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

MARKETPLACE

Stay on top of your group activity without leaving the page you're on - Get the Yahoo! Toolbar now.

---

Get great advice about dogs and cats. Visit the Dog & Cat Answers Center.

---

Get real-time World Cup coverage on the Yahoo! Toolbar. Download now to win a signed team jersey!

Switch to: Text-Only, Daily Digest • Unsubscribe • Terms of Use

.

__,_._,___