I read an article about position sizing using married puts with long stock at radioactivetrading.com. Kurt's strategy of married puts is a good idea, but if you remember from my article on option synthetics, that: Long Stock + Long Put = Long Call Kurt could achieve the identical risk profile using only long calls. Asking which … [Read more...] about Which is Better: Married Puts or Long Calls?
The CBOE announced they are adding half-point strikes for the CBOE Volatility Index (VIX) options. The half-point strikes will be listed for the near-term expiration month and in the strike price range of 10 to 15 (i.e. 10.5, 11.5, 12.5, 13.5 and 14.5 strikes). The CBOE will keep half-point strikes (between 10 and 15) on a continual … [Read more...] about VIX Options to Add Half-Point Strikes in Near-Term Expiration
Dan Harvey has a spreadsheet he uses to help guide his contract sizes and manage his Weirdor trades. I extracted the option Greeks portion of it and created an online version which is at http://capitaldiscussions.com/option-position-greeks-calculator Here's a screen shot of it: As the instructions say, you just enter in the price … [Read more...] about Option Position Greeks Calculator Online
I started a June Weirdor/JEEP yesterday. We just moved the account I'm trading from ThinkOrSwim (TOS)to Interactive Brokers (IB) for several reasons: - Better execution and lower commissions - Opening the account through LiveVol will give access to LiveVol X trading software - IB can send data to NinjaTrader, which I use - We were … [Read more...] about Starting a RUT JUN Weirdor
I posted in the forums about seting up OptionVue correctly to get the correct greeks for VIX options. Jim sent me an interesting link to six figure investing's article on "Thirteen Things Your Should Know About Trading VIX Options." Bullet point number four says "The option greeks for VIX options (e.g. Implied Volatility, Delta, … [Read more...] about Are your Greeks correct for VIX options?
Jim Riggio presented the Jeep trade at the Options Tribe this week. Here is the replay of the meeting: You can download the slides at http://cdurl.us/slides Jim Riggio created the Jeep are a modification to Dan Harvey's Weirdor. The Weirdor and Jeep are asymmetric iron condors with hedges near the spot price. This is what a … [Read more...] about The Jeep Trade
What is Capital Discussions? We are building an online community for investors and option traders with education from various experts and services to implement trading strategies via auto-trading and managed accounts. We have plans to publish weekly stock screening scans for value investors. Our data becomes available on Saturday … [Read more...] about We are just getting setup