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Rudolph:
Please send me a copy of your paper.
Lionel Issen
lissen@xxxxxxxxx
----- Original Message -----
From: rudolf stricker <lists@xxxxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: Wednesday, August 16, 2000 11:14 PM
Subject: Re: What options to sell?
>
> Michael,
>
> On Tue, 15 Aug 2000 12:16:42 +0200, you wrote:
>
> >this is going to be the my last post on this, because it's getting too
> >time-consuming for me.
>
> This might be an advantage, because seemingly not many people here are
> interested in _preferably directional_ option trading, and otherwise
> my 1h/day- limit for trading-related things might be stressed too
> much. - But, unfortunately, some of your remarks have to be corrected,
> as far as they address my option trading approach (, leaving behind
> the subliminal sentiments).
>
> >I am sure there will be some interesting papers from you in the future
>
> Because I'm not a "paper worker", I didn't write any paper about the
> "TA-based" part of my trading, because everyone can do similar things
> to support his/her practical day-to-day option trading.
>
> About the "DMT-based" part I wrote a more general paper, which will be
> presented (and hopefully discussed) at an inter-disciplinary
> (european) conference on practical applications of "intelligent"
> computing techniques next month. Imo, this DMT model might be of some
> interest, because it can be seen as a _dynamic_ extension of the B&S
> model. (Let me know by email, if you are interested in a copy of the
> paper.)
>
> >You write: "...all the _useful_ combinations of options to trade would
> >"automatically" show up if we apply an appropriate system modeling
approach
> >to a "network" (see above) of options with "constant trading strength".
> >
> >It's a bit like saying "We would automatically be able to levitate in the
> >air if we applied an appropriate levitation modeling approach." Show that
it
> >can be done!
>
> You may have missed the point, that in fact spreads show up at my
> present "1-dim" ATM system, because I work simultaneously with
> long/short positions in calls/puts. So why shouldn't this continue, if
> I apply the procedure to an "option network". Therefore, there is no
> need to parameterize (and test) all the spreads theoretically
> possible, because they are implicitly modeled via the "option
> network".
>
> >The great thing about option spreads is that you can give three
> >variables - price, time, and volatility - different weightings according
> >your perception of the market.
>
> That's fine, and my approach (for several reasons) is to concentrate
> on price & volatility, where time is handled necessarily as an
> implicit parameter, due to the dynamic aspects included.
>
> mfg rudolf stricker
> | Disclaimer: The views of this user are strictly his own.
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