Quote:
Originally Posted by :::grimReaper:::
Funny how the guy trading with $100 in the "mico stakes" thread is getting more love than this.
Sports -
1) How much are you risking and winning in the worst, average and best cases?
2) How do you expect to fare if/when volatility comes back?
Also, it'd nice to see what these winnings are as a percent of account if you don't mind sharing.
And do you broadcast your trading anywhere, e.g. twitch, youtube?
Yeah, I started the thread a bit douchey (with a douchey title) rather than trying to demonstrate how serious I actually take it and how much work, study and analysis it actually took to get here. That might have something to do with it. I should maybe restart the thread with a more serious undertone.
My risk is always fluid depending on what's happening. I posted earlier about a quick calc cheat sheet I develop before the day to determine where I'd like to be risk wise. My risk analysis also evolves during the day. At market open, both the swings and the spreads are huge, so I have to be mentally prepared for missed opportunities (often I think a stock will go down at market open, and it does, but the "put" price I'd like to enter gets blown way too high too quickly or the spread pricing is ridiculous). As the day progresses (and volitility slows), I have to be more cognizant of decay. In reality, an entire option position could be wiped out very quickly. All a very cryptic answer, but I calculate theta and delta based on various movement and volitility scenarios beforehand (so I have an idea in my head) when trading live. There are times when I've exited positions at a 30% loss, 20% loss, 5% loss and 1% loss. The same goes for gains. So my trading is fluid when live, but very calculated going in.
I actually require volitility in order to make money. The best days over my career have been the few days where the VIX has spiked (albeit small and far between spikes recently). I lost a lot of money on decay with some FB plays a couple weeks ago (I think it was 7/15) when FB traded in a bizarre and completely flat trend range the entire day. There was volume, but some makers were holding the price at 159.9 firm the whole day, no matter what. Thus my positions decayed.
Also interesting is that over the last month (even though the market was on a run) my positions were about 60% puts and 40% calls (if I get a chance I'll post a screen shot of the breakdown from my account).
I've been on the fence about doing something more public. This 2+2 thread was me "dipping my toes" in a bit to see how it goes. So far I've bombed a bit (plus, I may just be a donkey on a heater at the moment). But if my upswing continues, I may get more serious about it.