dashover
226 posts
msg #131162
- Ignore dashover
modified |
9/14/2016 3:43:37 PM
last 5/5 trades connected! see the spreadsheet
www.greatwizeoz.com
Dash
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gmg733
788 posts
msg #131167
- Ignore gmg733 |
9/14/2016 9:08:38 PM
Dash. I've been trading options for a while and it took a while to get the hang of it but I've profitable for some time now. Like most I try different techniques and I'll share what I learned through my tuition that is the market. Some of these tips I learned on my own and from professionals.
1. Never buy options unless volatility is low, like a calendar, or unless you are hedging.
2. Try to be none directional. Make theta work for you.
3. Always manage early. 50% in most cases. I learned this after seeing credit spreads profit slip away month after month nearing expiration.
4. If you wanna be directional, finance it. Buy a put but sell two calls and try to do for a small credit. Or do ratio spreads for little to no money. Be aware this is a directional play. If it goes your way or does not move you profit.
5. Learn to be able to adjust trades. I don't know how many losers over the years I've rolled month to month or managed my deltas to get out of a trade for a scratch, small profit or mitigate my loss.
I've seen guys who just sell crude 10 delta strangles every month and make money, good money. I need to incorporate more ATM machine strategies into my accounts like this as a basis or core and trade around it. I've seen core positions being net short in bonds and spx this year and these guys make money trading around this. Delta management techniques.
Thanks for the tip on the site. I started trading futures recently because I wanted more leverage and a lower effective rate. It'll be nice to see how a pro does it. :)
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dashover
226 posts
msg #131176
- Ignore dashover
modified |
9/15/2016 10:36:10 AM
gmg,
I agree buying something and selling something is less risky, but it requires 4 moving parts when you adjust and that's a lot for newbies...
A guy who manages a huge hedge fund that I befriended likes to sell 6 month calls when IV's are through the roof and buy 2 month calls and I was toying with selling long term (March 17) calls and doing some call verticals in say November and waiting for the Vols to collapse?
How have you done with your calendars and do you keep them at the same strikes or are they diag's?
Dash
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gmg733
788 posts
msg #131185
- Ignore gmg733
modified |
9/15/2016 5:06:20 PM
For calendars vol has to be low (or I won't do it) and I usually sell around the 45 day front month and buy a back month for a small debit. I look to manage at 10 to 25 percent profit. Profit usually comes in the form of vol expansion as the back month vol will rise faster than the front month, not direction. Usually same strike.
I don't like doing them but don't have many options when vol is zero. Insane.
Adjusting trades doesn't mean adjusting all legs of a trade. For instance, if you are in a strangle and the most goes against you you can roll the low delta side to collect more credit and reduce cost basis. Some will roll into a straddle. Once I'm at a straddle I'll roll out in time unless my deltas are just screwed. Then I'm selling around it waiting until I'm right.
Last week I was short about 600 deltas and Friday got the ship back on track as my deltas came in and boom take profits. I've been short for weeks and finally got paid.
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FrankGr
5 posts
msg #131186
- Ignore FrankGr |
9/15/2016 5:18:57 PM
Hey Dash, I like the way greatwiseoz's portfolio looks...for most of this year at least. I'm having a bit of trouble figuring out what happened in previous years. Do you follow his calls and get similar results? Certainly looks better than what I've been doing! Also, the site never mentions email, just text -- can he also send out emails?
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dashover
226 posts
msg #131189
- Ignore dashover
modified |
9/15/2016 6:24:32 PM
Oz is a personal friend for the last 5 years and he is super disciplined and simply better than me.
He has done very well trading and he's been in the game since 1968..
His profitable trade percentage has hovered around 55%.
I don't take every trade but I like to jump on when I see he's been wrong the last few in a row or if I can get a much better fill than him. So I try to game his approach..
This year he has been disciplined to record every trade; win or lose...
In years past he didn't keep the spreadsheet current.
It's a huge chore, but I can't think of many guys that show EVERY trade, or show accurate fills.
They many times only show their winners or lowball entries etc..
He has taught to sell at a loss rather than to ride it down to zero, which I did for years.
He sends emails with each trade, writes a recap most nights and emails a weekly report.
He is a genuine good guy.
That's why I run the site for him.
I'm telling him to lower the monthly fee by 40% too.
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FrankGr
5 posts
msg #131190
- Ignore FrankGr |
9/15/2016 6:55:06 PM
That all sounds good, Dash. If he takes you up on your suggestion about reducing the price I'll be the first to jump on that! You can tell him I said so. Seems like good timing, now that we're coming out of the summer market rut. I'll be watching...
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c1916
77 posts
msg #131194
- Ignore c1916 |
9/15/2016 10:21:28 PM
I've got his site on my daily review list and have paper traded based on the information as it appears on the free site. I usually make a call on whether I've completely missed the boat and prices have moved too much between his buy in and his post or whether I can get in at (or near, or better than) his price before booking the paper trade. Results have been relatively positive. Although I've not pulled the trigger on any actual trades based on his advice, I'd be interested in giving the pay service a shot in my spec account as well at a considerably lower price.
BTW...I noticed long ago that the 2014 and 2015 results do not appear to be complete/verifiable, similar to the earlier comment.
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FrankGr
5 posts
msg #131216
- Ignore FrankGr |
9/16/2016 2:45:00 PM
All right, just checked and the Great Wise Oz followed your advice for the price reduction! Thanks, Dash, I'm going to give it a good try.
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FrankGr
5 posts
msg #131226
- Ignore FrankGr
modified |
9/16/2016 8:14:13 PM
It concerns me that Charles Moskowitz was once known as paid penny stock pump-and-dump promoter. There's no mention anywhere that I can find of him working with options, other than the apparently now defunct Moskowitz Report..
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