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

 

Michael

Unfortunately, I cannot provide a graph for a couple of days as we have a long weekend here in the UK; but it may be easier to follow if you bought the 145/165 box for $20.00 to simplify the position.

This would leave;

-1c 165 / +1c 170
+1p 130 / +1p 135 / +1p 140 / -2p 145

Net Credit $4.89

Cheers
James

--- In OptionClub@yahoogroups.com, "mcatolico" <mcatolico@...> wrote:
>
> Update 4/30/10
>
>
>
> Okay huge selloff (GS down 15 to 145) proving Sam's prescience. Volatility
> explodes as well. The trick here is to use the existing position and shift
> the risk profile. That measly little extra long 140 put unit proved more
> than enough to make this a decent move for the trade.
>
>
>
> Adjustments -
>
> Going to clean house on this first by converting everything to a
> 140/145/165/170 condor using some crazy strikes.
>
>
>
> Opening position was:
>
> +1 150c/-2 155c/+1 170c
>
> +1 160p/-2 155p/-1 150p/+2 145p/+1 140p
>
>
>
> Net credit: 2.26
>
>
>
> To get to the condor add
>
> -1 145c/-1 150c/+2 155c for 5.65 net credit
>
> -2 145p/+1 150p/+2 155p/-1 160p/-1 165p for 16.15 net credit
>
>
>
> As complicated as this may look, all I'm basically doing is unloading
> inventory and doing something of a guts condor all by taking advantage of
> the big IV spike.
>
>
>
> This yields a condor
>
> +1 140p/-1 145c/-1 165p/+1 170c
>
>
>
> I also want to keep in the spirit of the trade by hanging on to the short
> delta forecast (which is working out so no reason to change course) and add
> some vega on the spike.
>
>
>
> So add a put side ladder -1 145p/+1 135p/+1 130p for a net credit of $0.83
>
>
>
> If I got all the plusses and minuses correct, the net end of day position is
> thus:
>
> -1 145c/+1 170c
>
> -1 165p/-1 145p/+1 140p/+1 135p/+1 130p
>
>
>
> Net overall credit is $24.89
>
>
>
> If someone wants to graph this it might become clearer how simple this
> position actually is. We've got the big condor with almost no upside risk
> and an extra put unit that is protection (or opportunity) for further
> selling and/or IV increase. There are multiple ways for this to become
> profitable: drift/bounce higher or further jarring selloff are the biggest
> bonuses to the position. a mild drift lower can be scrambled after but may
> pose the most threat. The trade as it stands makes 4.89 anywhere between
> 145-165 and loses no more than 0.11 above 170. On the downside would be
> 10.11 between 135-130 but has nothing but upside potential in the unlikely
> event that sachs collapses well below 115.
>
>
>
>
>
>
>
>
>
>
>
> From: OptionClub@yahoogroups.com [mailto:OptionClub@yahoogroups.com] On
> Behalf Of mcatolico
> Sent: Thursday, April 29, 2010 11:39 PM
> To: OptionClub@yahoogroups.com
> Subject: RE: [TheOptionClub.com] GS TRADE [was:How do you manage your Vega?]
>
>
>
>
>
>
>
>
> Update 4/29/10
>
>
>
> GS continued higher through 160 today (despite all the doom and gloom about
> the firm). And IV drifted another couple points lower (take a look at the
> atm straddle to see how vega really got sapped today).
>
>
>
> So the position needs some tweaking here to center it around the 160 strike.
>
>
>
> Adjustment:
>
> +1 155c/-2 160c/+1 170c $0.40 credit net on this unbalanced fly.
>
>
>
> This nudges the body of the trade closer to and surrounding the atm (160)
> strike while retaining the extra downside units in case the Sam scenario
> returns. For the most part the trade is vega negative (i.e. has positive
> decay) into a declining or flat implied volatility environment with an extra
> put unit should big gap type event occur.
>
>
>
> Brings the position to.
>
>
>
> Net position:
>
> +1 150c/-2 155c/+1 170c
>
> +1 160p/-2 155p/-1 150p/+2 145p/+1 140p
>
>
>
> Net credit: 2.26
>
>
>
>
>
>
> <http://geo.yahoo.com/serv?s=97476590/grpId=7175665/grpspId=1705001864/msgId
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[TheOptionClub.com] More Radioactivity?

 

List,

I found the "Radio Active" seminar and and Kurt's "Trade Simulator Tool" interesting. I have been mulling over a couple of somewhat related scenarios that I'm not sure about and would like to get some feedback on them please...

1)I didn't hear Kurt mention the tactic of buying >5 month out puts with a Delta more than approximately .9 which would maximize profit on the put allowing one to purchase more stock and a new put contract (...a tad more capital)once the value of it was worth 100 shares.

I was unable to determine when/if he would abandon a married put position. His adjustments mentioned (10 possible, 9 of which "do not add risk") only seemed to mention moves in the underlying going higher. True, the MLV trade did drop, but apparently not significantly as some tend to do. If however a person stayed with the sinking underlying trade, giving it moves enough.(...in either direction) Wouldn't the odds of it becoming profitable increase using the above method given enough time for the stock to move?

2)Why not try the same 4% loss philosophy using directional bias option trades? (I'll call this the "Coin Flip" method. :) Certainly a person could be right at least 50% of the time. (A bit tricky in a fast moving market, true... perhaps best to avoid during rush hour trading?)

winged

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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.

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

 

Very well stated, Chris. You’re right, that’s what makes this group so valuable to so many retail traders. The honest and open debate is the only to grow as a trader. Thanks for your hard work and openness to new ideas.

 

---

From: OptionClub@yahoogroups.com [mailto:OptionClub@yahoogroups.com] On Behalf Of TheOptionClub
Sent: Friday, April 30, 2010 6:18 PM
To: OptionClub@yahoogroups.com
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@yahoogroups.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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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:
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[ConservativeOptionStrategies] KCM Model Portfolio update

 

30-APR-2010 MP update -



G

---

From: Gilbert Arevalo <gilbert_arevalo@rocketmail.com>
To: CoveredCallFund-Mentoring@yahoogroups.com
Cc: ConservativeOptionStrategies@yahoogroups.com
Sent: Tue, April 27, 2010 6:51:02 PM
Subject: [CoveredCallFund-Mentoring] KCM Model Portfolio update

 

27-APR-2010 MP update -

G

---

From: Gilbert Arevalo <gilbert_arevalo@ rocketmail. com>
To: CoveredCallFund- Mentoring@ yahoogroups. com
Cc: ConservativeOptionS trategies@ yahoogroups. com
Sent: Tue, April 27, 2010 6:46:00 AM
Subject: [CoveredCallFund- Mentoring] KCM Model Portfolio update

 

26-APR-2010 MP update -



We've got exposure (again). Now the question is will we get STOPped out before expiration ,how many months will this rally last and when will we get a "classic" (capitulation) correction?

That may benefit my long-term, high-growth strategy the most. . .since a multi-month uptrend - w/*new* leading stocks - will provide the best risk/reward scenario.

G

---

From: Gilbert Arevalo <gilbert_arevalo@ rocketmail. com>
To: CoveredCallFund- Mentoring@ yahoogroups. com
Cc: ConservativeOptionS trategies@ yahoogroups. com
Sent: Sat, April 24, 2010 9:59:42 AM
Subject: [CoveredCallFund- Mentoring] KCM Model Portfolio update

 

24-APR-2010 MP update -




Since the 01-Mar-2010 "follow-through" - confirming the bottom to the market's 10% correction - the indexes have gained about 10%. Normally, our system plays using covered calls will vault our gains about equally as much (perhaps a bit more) in almost 2 months. This has still been a tenuous market period, with the past  6-9 months seeing many (risky) swings up and down along the way. Recently, market action has been *more* healthy and we have made an attempt to gain exposure.



We will continue to do so, as the market allows.

Keep in mind that with a system that targets high-yielding covered call plays with mostly momentum or growth stocks - a very healthy dose of solid risk management is imperative. . .until optimal market periods unfold to meet with equally-optimal CC fund gains. A Covered Call Fund with a high CAGR (compound annual growth rate), can be suddenly taken down with stock losses that never return in price and making up for steep losses can be nearly impossible.

G

---

From: Gilbert Arevalo <gilbert_arevalo@ rocketmail. com>
To: CoveredCallFund- Mentoring@ yahoogroups. com
Cc: ConservativeOptionS trategies@ yahoogroups. com
Sent: Tue, April 20, 2010 6:42:04 AM
Subject: [CoveredCallFund- Mentoring] KCM Model Portfolio update

 

19-APR-2010 MP update -

G

---

From: Gilbert Arevalo <gilbert_arevalo@ rocketmail. com>
To: CoveredCallFund- Mentoring@ yahoogroups. com
Cc: ConservativeOptionS trategies@ yahoogroups. com
Sent: Sat, April 17, 2010 8:50:45 AM
Subject: [ConservativeOption Strategies] KCM Model Portfolio update

 

16-APR-2010 MP update -



YTD: ($170)
YTD: -85%

---

From: "zmostatabi@ aol.com" <zmostatabi@aol. com>
To: ConservativeOptionS trategies@ yahoogroups. com
Sent: Thu, April 15, 2010 7:53:11 PM
Subject: Re: [ConservativeOption Strategies] KCM Model Portfolio update

 

Just wonder if you can tell the rate of return so far in 2010.

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

 

I for one really appreciated Chris' lengthy "justification", showing why he had certain people on, etc.

---

From: rick8work <rick2max@gmail.com>
To: OptionClub@yahoogroups.com
Sent: Sat, May 1, 2010 9:26:33 AM
Subject: [TheOptionClub.com] Re: Kurt Frankenberg's Radioactive Trading

 

Chris... What TraderKip said.

Rick

--- In OptionClub@yahoogro ups.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,strategie s 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@yahoogro ups.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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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:
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[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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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.

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

 

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@yahoo.com

---

From: TheOptionClub <chris@theoptionclub.com>
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.
>

__._,_.___

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

Messages in this topic (6)

Recent Activity:

• New Members 8
• New Links 5

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

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

.

__,_._,___