Everyone is still printing money. Strangely Gold and Silver have had their day for the time being. Maybe I'll be able to buy back the Gold I sold at $880 and then watched the price go up.
Lot's happening in the markets again as the transition continues. The only constant is the methodology I use to make my trading decisions. I'm spending a lot less time in front of my screen and am using the daily timeframe with options more and more.
Here are a couple of charts that show the type of things possible. When you look at the chart, if you ignore the description on the top, the chart looks like any intra day chart even though it is daily. Instead of using the underlying, I use a vertical credit spread (VCS) so that my ROI is increased and I improve my edge by more than 66%. How is the edge improved? Well, the VCS means that I make money by both the directional move and the erosion of the sold option. My typical trade is a 15% profit on the margin I use. It's important how the trade is constructed using the variables of DTE (days to expiration) and the Deltas of the two option legs. I've set up a screener on MultiCharts and can follow lots of symbols and take the cream, trading as many opportunities per month that come up. Same analysis as intraday.
The book is going slowly but surely. I'm getting what is often called "scope creep" which means that what I have decided to cover in the book is increasing. As I cover something, it leads to something else that I think is important. And so it goes.
I'm skiing most mornings. We've had lots of people staying over here during the winter and that's been a welcome distraction. We're heading to Dubai in a while to have a look and then to the Italian Riviera as summer gets under way. I'm planning on getting a Microsoft Surface Pro as my travelling PC. I can connect it to TVs wherever I am with HDMI and get a big enough screen. My Samsung Note2 will allow me to tether to the Internet wherever I go.
Hi EL,
ReplyDeleteDoes your MultiChart scanner can for conditions on the underlying or for conditions on the option (i.e., delta, DTE)?
Thanks,
Gary
Gary, on the underlying. I have to make the decision of what strikes and DTE's to use. That part is the art. The trade selection is mostly science and fairly mechanical.
ReplyDeletejenrique42
ReplyDeletemi oportunidad de hoy, 04/03/2013
- http://img10.imageshack.us/img10/3481/trade259.jpg
- http://img194.imageshack.us/img194/4665/operativa03042013.jpg
jenrique42
ReplyDeleteI saw the opportunity but do not, for various circumstances, but there is
- http://img542.imageshack.us/img542/8846/operativa03112013.jpg
jenrique42
la oportunidad que vi pero que no realice, por diversas circustancias, pero hay esta
- http://img542.imageshack.us/img542/8846/operativa03112013.jpg
jenrique42
ReplyDeleteafter a couple of days seeing only the screens, today I found a loophole where they put me, and do my trade of the day
- http://img163.imageshack.us/img163/5131/trade261.jpg
- http://img46.imageshack.us/img46/1970/operativa03132013.jpg
PD-green asterisk, is where I began to see the possibility of a long trade, and the arrow where I got long
jenrique42
despues de un par de dias viendo solamente las pantallas, hoy he encontrado un resquicio donde meterme, y hacer mi trade del dia
- http://img163.imageshack.us/img163/5131/trade261.jpg
- http://img46.imageshack.us/img46/1970/operativa03132013.jpg
P.D.- el asterisco verde, es donde empece a ver la posibilidad de un trade largo, y la flecha donde me meti a largo
Glad to hear the book is progressing, even if slowly. Take care good sir.
ReplyDeleteJENRIQUE42
ReplyDeleteMIS OPORTUNIDADES DE AYER, 15/03/2013
1.- 1º TRADE; http://img716.imageshack.us/img716/216/trade262.jpg
2.- 2º TRADE; http://img43.imageshack.us/img43/7715/trade263.jpg
SU EVOLUCION POSTERIOR
http://img853.imageshack.us/img853/9702/operativa03152013.jpg
Hi Tom,
ReplyDeleteI think I have read the blog start to finish 4 times now over the past 2 years. What role does trading 3 contracts per trade entry play in your profitability? If you took the exact same entries and exits with one contract would you still be profitable at all?
Thanks,
Bill
Bill, you can be profitable with 1 contract. It's all in and all out. Multiple contracts give you a opportunity to create a more flexible money management plan be scaling out. Trading onc contrct means you could exit on a peak and re-enter on the trough until the trend is over.
ReplyDeletejenrique42
ReplyDelete18/03/2013
http://img546.imageshack.us/img546/908/trade264.jpg
http://img202.imageshack.us/img202/8162/operativa03182013.jpg
19/03/2013
http://img831.imageshack.us/img831/130/trade265.jpg
http://img10.imageshack.us/img10/1300/trade266.jpg
http://img42.imageshack.us/img42/778/operativa03192013.jpg
http://img837.imageshack.us/img837/1639/operativa03192013b.jpg
los trades y su posterior evolucion
jenrique42
ReplyDeletemi operativa de hoy
http://img16.imageshack.us/img16/6388/trade269.jpg
http://img841.imageshack.us/img841/6996/operativa03252013.jpg
jenrique42
ReplyDeleteone thing for a couple of days I haunts the mind, in one of your post, tried to explain how, despite my putting, for example, shopping, market prices could go down as the opposite can also happen at that time he first gave too much importance and secondly I did not understand but now I would like to understand it, so I wish you'd come back to explain but now with a little more detail if possible, thanks
jenrique42
hay una cosa que desde hace un par de dias me ronda por la mente, en unos de tu post, intentaste explicar como a pesar de ir metiendo, por ejemplo, compras, el mercado podria ir bajando los precios, como tambien puede suceder lo contrario, en aquel entonces primero no le di demasiada importancia y en segundo lugar no lo entendi sin embargo ahora me gustaria entenderlo, por eso me gustaria que lo volvieses a explicar pero ahora con algo mas de detalle si es posible, gracias
My operational today, 02/04/2013
ReplyDelete1st trade. - Http://img843.imageshack.us/img843/6688/trade272.jpg
2nd trade. - Http://img546.imageshack.us/img546/2767/trade273.jpg
3rd trade. - Http://img39.imageshack.us/img39/8611/trade274.jpg
4th trade. - Http://img843.imageshack.us/img843/6479/trade275.jpg
Positive ALL
and complete evolution
http://img199.imageshack.us/img199/25/operativa04022013.jpg
my operation today, 08/04/2013;
ReplyDelete1st trade. - Http://img577.imageshack.us/img577/3213/trade279.jpg
2nd trade. - Http://img197.imageshack.us/img197/8806/trade280.jpg
its subsequent evolution
- http://img22.imageshack.us/img22/1809/operativa04082013.jpg
jenrique42
ReplyDeletehttp://img600.imageshack.us/img600/4513/trade281.jpg
http://img812.imageshack.us/img812/5306/operativa04092013.jpg
jenrique42
ReplyDelete1º trade .- http://img163.imageshack.us/img163/2586/trade282.jpg
2º trade .- http://img248.imageshack.us/img248/6161/trade283.jpg
y su evolucion posterior
http://img441.imageshack.us/img441/7417/operativa04102013.jpg