Trading in Luxury

Discussion in 'Journals' started by traderlux, Dec 5, 2009.

  1. thanks for the reply, some interesting thoughts. i see what you mean about going nkd on the 40 strike. i have been trading spy bps and wanted to start looking at some possible bear call srpds. i thought the risk was not too bad, a dime out of a dollar strike spread. you think that is no buena? i have been doing about 6-8 cents out of a dollar with most of my spy trades.
    on the recent intc trade i did 12 cents and had to buy back at 18 cents.

    i am also looking at selling cash secured puts vs the vertical credits. i think it is easier to recover from a bad trade by either rolling the put or taking assignment and going to a covered call mode.

    some of my verticals i bought back at a loss, when if it had been a cash secured put i could have held on and come out ok. but with the vertical and the possible bigger loss i was "scared" out of the trade and didnt have the strikes available to get a good roll.

    i checked out your blog, looks interesting. i saw where you traded short puts on tbt, so you are thinking rates will rise?
    i am thinking rates will fall.
    #31     Aug 7, 2010
  2. sat 101814, trade idea

    clf 58.49

    sep +47/-48p .11/1.00

    18% otm

    spy 108.31

    sep +99/-100p .11/1.00

    7.7% otm
    #32     Aug 15, 2010
  3. steoli


    I trade mainly technical. The TBT trade is a contrarian one.

    My view is that the flight-to-safety trade should subside in the months ahead, as it becomes clearer that the domestic (and world) economy is not going into a double-dip but rather into a moderating expansion.

    I could trade the PUTS Naked or trade a Put Ratio Spread. I've done the Naked.

    Feel that's a buy? Then sell...
    #33     Aug 15, 2010
  4. ""The Garbage Trade

    We all fear “the big drop.” You know what I’m talking about I’m certain. The big unexpected drop in say the stock market or the bond market or some individual stock or whatever, the one that seems to catch everyone by surprise.""
    #35     Sep 3, 2010

    Scuderia is Italian for a stable reserved to racing horses, and the word is also, like corresponding words in some other languages, used for race car teams. Ferrari refers to Enzo Ferrari, the founder of the company. The prancing horse was the symbol on Italian World War I ace Francesco Baracca's fighter plane, and became the logo of Ferrari after the fallen ace's parents, good friends with Enzo Ferrari, asked him to continue his tradition of sportsmanship, gallantry and boldness.

    general market notes

    SCUDERIA, stable of general market conditions,

    alignment abc
    #36     Sep 5, 2010
  6. #37     Sep 18, 2010
  7. Modified SPY long/short indicator

    i have modified the "kevindicator" to make it more intuitive for my own understanding. you can read about the original (thanks to kevin) at link to stockfetcher forums, (you can read without sign up), look for
    "Interesting - VXX:SPY ratio accurately calls recent tops and..."

    one problem i have with the original indicator is that the vxx has a built in negative decay due to rolling futures contracts. i have recently tried using vxz instead, it looks a little cleaner. also, with the ratio being vxx to spy, it was just backwards of how i would look at it.
    so here is my version, using vxz and reversing the ratio. realize the roc reads opposite the original now also. you want to be long spy with a positive roc.

    note both the original and the modified indicators turned long late aug and remain on a long signal.
    #38     Oct 1, 2010
  8. #39     Oct 2, 2010
  9. deal or no deal

    ibm 135.97, jan 135c 3.85 (cnbc, optionsaction) looks interesting|C|B2

    sbux,aa,pnra,gmcr, considering puts, about 3mo, just otm,aa,pnra,gmcr|C|B2

    modified kga indicator is telling me the general market is still positive

    another way of watching it,vxz|C|B2

    interesting discussion at theoptionclub (y! group) about simple vs complicated option trading
    #40     Oct 3, 2010