If you're going to trade options, then I'd concentrate on just a few underlyings but make sure there is plenty of volume, both in the underlying...
Ahh, then no. I don't neutralize gamma, or any other greek for that matter, based on my impression of whether the market will turn. I adjust...
It is not possible to know if a market temporally or spatially will reverse, although all markets change directions. At some point. Can you be...
Could you restate what you're asking?
Wow. How insightful. "We can beat our numbers if employment improves and people keep buying." Yikes. I have to believe even Dr. Siegel is...
Well said.
You've got to be kidding. An obstetrician alleging that somehow a group of academic economists are confused about monetary principles? He may be...
Huh? Shorting index put vol can be a favorable trading strategy but not because you're assigned and then resigned to overwriting. It's because...
Yes, it's a fine approach, and even better if you bias the fly delta in the direction of your expected market move. You can still get run over,...
Amen. The study cited by Gladwell could have just as easily shown that an additional 5 variables in the model would have added value. It just...
The round peg comment was not meant to be insulting, but more to emphasize that you're solving for your desired outcome in too complicated a...
It seems as if you are trying too hard to make a round peg fit into a square hole. Can you re-orient us on your overall objective?
Oh yes, they might. And that's the very situation you want to avoid, however infrequently it occurs. Instead, consider using your option trading...
And some 5 delta puts. Hedge with the underlying.
+1. Don't even think of substituting trading for your daytime job until you can trade on paper through all kinds of what-if scenarios. Unless...
Sure. It's not the only factor, but you can take advantage of certain circumstances that happen occasionally. Then there are the discrepancies...
My view is that Sinclair's book is one of only a handful of books outside of proprietary monographs that lend an academic slant to option trading....
Agree
Just to answer the query re: Sharpe. CBOE data from June 88 to May 07 on BXM and PUT indices: 0.24 and 0.28. SPX same timeframe is 0.18.
Besides the good comments you've already received, spend some time with Natenberg and Sinclair.
Separate names with a comma.