Saturday, May 1, 2010

[TheOptionClub.com] Re: Kurt Frankenberg's Radioactive Trading

 

Chris... What TraderKip said.

Rick

--- In OptionClub@yahoogroups.com, CHARLES I WEBSTER III <kipwebster@...> wrote:
>
> Chris....Please STOP your lengthy justification of HOW you wish to
> run the website...do NOT play into the petty jibes of a few
> malcontents claiming to be so abused by an open attempt to
> bring expanded option awareness,strategies and knowledge.
>
> Nobody said they HAD to attend ANY webinar...everyone
> should remember this.
>
> Keep on doing your EXCELLENT website YOUR way...if
> somone doesn't like it, they can LEAVE
>
> TraderKip
>
> You're never old, unless
> you think you are; but it
> IS later than you think!
>
>
> kipwebster@...
>
>
>
>
> ________________________________
> From: TheOptionClub <chris@...>
> To: OptionClub@yahoogroups.com
> Sent: Fri, April 30, 2010 7:17:37 PM
> Subject: [TheOptionClub.com] Re: Kurt Frankenberg's Radioactive Trading
>
>
> I see...
>
> First, I do not support or oppose any particular options strategy or
> trading strategy. What I try to encourage is an intellectually honest
> evaluation of strategies and trading methods. What Kurt and I have
> debated over the last few years is 1.) the synthetic equivalence of the
> married put and the long call option, and 2.) the renaming or
> mislabeling of established options strategies. As a result of that
> debate, Kurt has acknowledged the synthetic equivalence of the married
> put / long call and has in later revisions of his "Blueprint" identified
> each of his options positions with traditional naming conventions.
>
> Kurt is still an advocate of his particular brand of married put.
> Fine. To each their own...
>
> One aspect of what Kurt Frankenberg has done with his Radioactive
> Trading plan that I have always applauded is the attention paid to risk
> management. That is the real foundation of what he is doing. Not the
> DITM married put. In fact, if you watched this week's presentation I
> highlighted the fact that these DITM married put positions carry a
> rather low delta which may not be what you want if you're intent is to
> get bullish. But, I also addressed the idea that by using call options
> instead of married puts it is important to avoid the temptation of
> committing an equal amount of capital to the calls as you would the
> married put which would result in becoming over leveraged. That goes
> back to risk management.
>
> The last few months I have also had Charles Cottle the "Risk Doctor,"
> John Summa, Ph.D., from OptionNerd, John Brasher from Call Writer, Mark
> Espy from Market Tamer, Mark Sebastian from Option911, and Dan Sheridan
> speak to our group. Dr. Summa trades options on futures, which I do
> not. I do not trade covered calls they way John Brasher trades them. I
> do not trade Mark Espy's "Wheel of Profit." I don't perform weighted
> vega calculations before opening calendar spreads as Mark Sebastian
> encouraged. I'm sure there are difference between the way Dan Sheridan
> and I handle things.
>
> What do these speakers and Kurt Frankenberg all have in common?
>
> The commonality between each of these speakers is that they have
> something to add to the debate. A temptation that plagues retail
> traders is the desire to follow a single messiah or a prophet. The idea
> that we can find "THE" course, "THE" mentoring program, "THE" one
> missing ingredient to our success, often compels us to seek out and
> follow a single voice...a single idea. It's convenient, if nothing
> else. The trouble is that what works for one trader likely won't work
> for another.
>
> Why?
>
> We're wired different. Our lives our different. We have different
> needs, goals, aspirations, etc. My life is very different than John
> Brashers', or Dan Sheridan's, or Mark Sebastian's, etc. I need to find
> an approach that fits me, my personality, my lifestyle and schedule, my
> financial goals and current capital structure, etc.
>
> Kurt Frankenberg feels really, really good about owning stock that's
> protected by a DITM put option. I look at the position, see the low
> delta in contrast to the definitively bullish trade bias and wouldn't
> want the position in my account. Looking at and trying to weight vegas
> on calendar spreads would drive me batty. I'm not suited to it. Mark
> Sebastian thinks we're all crazy if we don't!
>
> Who's right?
>
> That's why we have the open forum. It's why I have an "open door"
> policy when it comes to the presentations. It may come as I surprise
> but so far this year I have invited no one to speak to our group. All
> of this year's speakers have asked if they could speak to us. I welcome
> them when the do.
>
> If I started censoring posts here so as to only allow posts that I
> agreed with, this forum would die off. It's presently the busiest
> options trading discussion board on the Yahoo! Groups network and I
> think it's probably one of the better ones on the Internet in general.
> A lot of different ideas get posted here, but that's what fuels the
> debate and what makes for a robust education.
>
> I also do very little to censor speakers, but I think that's why we're
> fortunate with the number and the quality of presentations that we get.
> The value is that a lot of ideas get laid on the table in front of us.
> We are then free to discuss, debate, and study the merits of those
> ideas. Some people may find that a particular speaker resonates with
> them and may want to pursue those ideas further. Others may find that
> very same speaker to be completely off putting.
>
> I decided years ago that I'm not going to decide for anyone here what is
> appropriate for them to see or hear. I'm parent to only one person in
> this world and she is not a member of this group...not yet, anyway. The
> rest of you need to decide for yourselves what makes sense in the
> context of your life, your finances, your goals, etc. I can help fill
> the table before you with many ideas and trading concepts for you to
> sample and consider. They won't all be to your taste. They may not be
> to mine, either! But then that's what makes all of this so interesting
> to talk about.
>
> Christopher Smith
> TheOptionClub. com
>
> --- In OptionClub@yahoogro ups.com, "srj3inc" <faltu0@> wrote:
> >
> > that you invited him for a presentation where once you were the one
> who was opposing the view of the strategy. RAT is nothing more than a
> marketing gimmick of a long call was the point of discussion.
> >
> > surprised that by inviting him, you indirectly supported the
> strategy.
> >
>

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