|
PureBytes Links
Trading Reference Links
|
dbtg,
Can't answer a few of your questions because I don't know about Conners
Vix, or the Trin Thrust. Regarding options, it sounds like you were trading
short term OEX straddles, I'm just guessing but I would imagine that big
numbers and wild volatility live at the OEX. I look at the Big market
sometimes just to see if the wind is still blowing that way. My guess(I
know nobody cares) is that we will see another rally into late June or
early July. I still feel that the market is very ripe and might just drop
off in the next year or two.
Option decay should be a regular mathematical relationship based on Theta
which always decreases at an increasing rate as time approaches zero. I
usually don't worry about Theta, it's there and I know it.
The markets are continually going through cycles of expansion and
contraction. When you know something like that, it's like knowing that a
river flows down hill. It should be possible to harness that phenomenon
like a paddle wheel mill harnesses a river.
> I expected this type of decay after Friday's report. Short straddle?
> strangle? ***Maybe, What is the volatility? My timing model would suggest
waiting until early next week.
Best Regards,
Brent
----------
> From: dbtg <dbtg@xxxxxxx>
> To: BrentinUtahsDixie <brente@xxxxxxxxxxxx>; RealTraders Discussion Group
<realtraders@xxxxxxxxxxxxxx>; Scot Billington
<scot.billington@xxxxxxxxxxxxx>
> Subject: Re: Gen: The problem with the subject of systems.
> Date: Wednesday, June 03, 1998 9:41 AM
>
> Hi,
> Thanks for a great list; the postings over the last two weeks
> were about the best since I've been on. I am still a newcomer
> to this business but I'd like to contribute something.
>
> - I think the CONNORS VIX reversal kicked in two days ago,
> can anyone confrim this? I do it manually and the 5-day RSI
> was 80 plus on Monday.
>
> - Has anyone tried the TRIN THRUST signal; I read about it somewhere.
>
> - There isn't a lot about OPTIONS in the RT ; I'd like the DOCTOR &
> others to comment on getting out of an option STRADDLE.... It's very
> slippery, trying to track both sides, I made a mess of the first one and
> my profits fell from 1800 to 250 in a few minutes. Looking back, I
realized
> I wasted too much time deciding what to do, procrastination being the
thief
> of time, AND money.
>
> - Option Decay : again this is new to me... but the OEX premiums seem to
> be decaying very fast this month!!!! I haven't looked at it closely but
it
> seems as if
> the premium decay accelerated last Friday and are evaporating by the
minute.
> I expected this type of decay after Friday's report. Short straddle?
> strangle?
>
> Many thanks
|