Quantcast
  1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.
onyxperidot
Last Activity:
Aug 25, 2017
Joined:
Oct 20, 2015
Messages:
116
Likes Received:
26
Trophy Points:
28

Following 1

  1. DGH
Gender:
Male
Location:
Canada
Occupation:
Retired engineer

Share This Page

onyxperidot

Well-Known Member, Male, from Canada

onyxperidot was last seen:
Aug 25, 2017
    1. There are no messages on onyxperidot's profile yet.
  • Loading...
  • Loading...
  • About

    Gender:
    Male
    Location:
    Canada
    Occupation:
    Retired engineer
    My first options trade dated back to the 1970's. I got lucky and traded some mis-priced options and made a little bit of money. But my luck soon ran out. I couldn't find any profitable trades anymore as professionals began trading with computer models. The only trades I made since then were mostly convertible bonds, married puts, covered calls, and diagonal collars -- nothing to write home about. Even though I did not make much profits over the years, I have not lost any capital either.

    Since I retired in 2015, I have begun to trade options more actively. Aside from tinkering with broken wing put butterflies, I have messed around with statically hedged time spreads which are typically long theta, short Vega, delta and gamma neutral. The theoretical promise of statically hedged structures is that once a trade has been opened, it virtually can be held to expiration with very few or even no adjustments. The theoretical yield on margin is not very high though, average 2-3%/month maximum. The most significant risk of this kind of trade is implied volatility spikes. The idea of static hedging of options: https://drive.google.com/file/d/0B9fPLkdZBZT6Qk9zT2ZlSE9HdW8/view?usp=sharing

    Signature

    --
    There is nothing either good or bad, but thinking makes it so. -- William Shakespeare