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veAL

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Posts posted by veAL

  1. Posted

    Hi Siuya,

     

    nice read!

    I suggest trading the delta hedge is a matter of historical volatility (in the option priced volatility) beeing less than implied volatility to be profitable. For this there has to be a day with higher volatility to be profitable. In general we can say one day in a week we have a wide ranging day, so to be profitable all depends on such a day. So the calculation is based on a probability of 1 out of 5... For a question of riskfree income there is the question if on one day the profit is higher than the losses of the other 4 days. Perhaps we should do the work looking at real market examples... ;)

    In my opinion trading directional moves with long delta strategies is probably a higher probable outcome. You can start out very small, choosing the options with high volume diminishes your trading costs... tighter spreads, and the insurance rate is a calculated risk position (long call / long put). Another plus is if you close out the position at the end of the day you do not have overnight risk, no gap opening.

    Maybe I should start trading options again...

     

    Thank you

    veAL

  2. Posted

    case a) you can buy calls or sell puts in about a month when you think there is no more room to the downside. but always if you sell a option you do have a obligation to fill the buyers demand, if there is some. this option would furter increase the portfolio position of your portfolio. be aware of this!!!

     

    case b) you can buy a put or sell a call. selling a call also has a obligation like above here if the BIDU share rises e.g. to 150 you will have to pay for each option = 100 contracts the inner price plus the time price for your contract. this can get very expensive if the share rises but if your belief is right you earn the Option Premium and can buy back the call on lower prices for much less. If you consider selling a call right now you can look for a call with a strike price of 120 to 125 an ATM (at the money) call to light in the money call. They have a good delta and are highly sensitive to the stock prices.

     

    If you have time you can read about the greeks here:

    http://www.traderslaboratory.com/forums/options-trading-laboratory/15473-usefulness-option-greeks.html

     

    or just ask your broker dealer to look for the right option for you ;-))

     

    hope this helps a little

    veAL

  4. Posted

    Hi Samuel,

     

    I am in search of a good broker too...

    I closed my account at Interactive Brokers because of their fees during inactivity in trading. But with their service and tradeable instruments I was highly satisfied.

    I thaught of opening an account with TD Ameritrade because of their variety of tradeable insturments and they don´t have a maintainence fee.

    I do not know which instruments you want to trade but a good start of the search for me was the Ninja Traders Brokerage Partner site:

    NinjaTrader stock, futures and forex charting software and online trading platform. NinjaTrader Partners.

     

    Hope this was helpful

    veAL

  10. Posted

    Spread betting? And what's with the 'Amerika' spelling, been reading Kafka? :)

     

    Sorry for the spelling. Used German-English or some form of it ;-))

     

    We in Germany are allowed to hedge with the same account where the US do not. Spread and Commissions apply, so my broker is satisfied...

     

    Cheers

    veAL

  11. Posted

    Hi Philmg,

     

    as described before hedging is always associated with managing risk. So for example you are trading the ES and have a setup but for the valid setup your stop has to be too far away and out of your comfort zone. So you might buy weekly calls or puts on the SPYor ES to create a position similar to the ES Futures trade but with less risk (limited risk). One other example would be you are in the gains but your stop is out of your comfort zone. So you could close out your Futures contract and trade weekly options with the intention to limit your risk to a smaller degree.

    With limiting your risk you do also limit your profit potential but not always ;-))

     

    In my Forex account it is possible for me, as I am not an Amerikan, to hedge my position by simply going long and short at the same time. But I never did this, I rather close out the position and wait for the next shoot....

     

    Happy trading

    veAL

  14. Posted

    Hi,

     

    I also think you got a lot of information yet. If you want more you can go to Balancetrader*|*Swing & Day Trading Market Profile Education Course

    this is a real cheap course and this guy had a daily chat. But since a few month he has an other project. So he isn´t in the chat during trading hours. But as he said he will keep on answering questions on his forum.

    Lastly I saw a course from James Dalton | Market Profile Trading Education | DVD for Traders . Yes the guy form MoM and Markets in Profile. Field of Vision is his new one with interactive DVD´s for 750 bucks. I was also interested but didn´t want to spent that much.

     

    Hope that was helpful

     

    veAl

     

    P.S.: There is also a free blog with pre market updates out there: James Dalton Trading | Market Recap and Updates | Free for Traders

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