Comments on: Position Updates - SPX, EEM, RTH http://www.optionsropeadope.com/2008/05/13/position-updates-spx-eem-rth/ Thoughts, Trades, and Instruction for Profiting from Options the Smart Way Sun, 05 Feb 2012 11:31:27 +0000 http://wordpress.org/?v=2.0.3 by: OptionsRopeaDope http://www.optionsropeadope.com/2008/05/13/position-updates-spx-eem-rth/#comment-18 Thu, 15 May 2008 18:57:45 +0000 http://www.optionsropeadope.com/2008/05/13/position-updates-spx-eem-rth/#comment-18 Michael, Thanks for the comment, as you'll see on my next post I wasn't quite so lucky... yesterday's moves hurt. Still came out winner overall, but I left some on the table. And thanks for the advice about combinng strategies... I don't do that on a single underlying, but want to do some testing and see how it works out. Duncan Michael,

Thanks for the comment, as you’ll see on my next post I wasn’t quite so lucky… yesterday’s moves hurt. Still came out winner overall, but I left some on the table.

And thanks for the advice about combinng strategies… I don’t do that on a single underlying, but want to do some testing and see how it works out.

Duncan

]]> by: Michael http://www.optionsropeadope.com/2008/05/13/position-updates-spx-eem-rth/#comment-16 Wed, 14 May 2008 06:22:07 +0000 http://www.optionsropeadope.com/2008/05/13/position-updates-spx-eem-rth/#comment-16 Well done on the RTH trade, I closed mine last week for a small loss, I tend to be out of my trades a by the last friday before expiry week, I have been hurt in the past due to gamma, so preferably I like to close most of my positions. EEM had a volatility pop last week, when it fell by more than 1 std, was a good chance to close the position for a profit, well, thats what I did, I had the same position as you, ROI wasnt great at 12.28%, but I aint complaining, given the vols crush experienced this expiry. My overall portf greeks were to exposed to vega, something I will be on the look out for next time. I like your approach to the ratio's for the greeks, I tend to look at my overall portfolio greeks, i.e.my overall vega exposure, like you, I'm always positive theta, hence my risk lies in delta and vega. I however, play vega depending on my outlook on volatility (I know, very subjective), but in this game you have to take some risk to make money. Try combining condor, flys and calendars, this will help you to determine the vega you want. Double Diagonals, can be used to have less vega exposure than calendars, this will be dependent on the width b/w your short and long strikes. Well done on the RTH trade, I closed mine last week for a small loss, I tend to be out of my trades a by the last friday before expiry week, I have been hurt in the past due to gamma, so preferably I like to close most of my positions.
EEM had a volatility pop last week, when it fell by more than 1 std, was a good chance to close the position for a profit, well, thats what I did, I had the same position as you, ROI wasnt great at 12.28%, but I aint complaining, given the vols crush experienced this expiry.

My overall portf greeks were to exposed to vega, something I will be on the look out for next time.
I like your approach to the ratio’s for the greeks, I tend to look at my overall portfolio greeks, i.e.my overall vega exposure, like you, I’m always positive theta, hence my risk lies in delta and vega. I however, play vega depending on my outlook on volatility (I know, very subjective), but in this game you have to take some risk to make money.

Try combining condor, flys and calendars, this will help you to determine the vega you want. Double Diagonals, can be used to have less vega exposure than calendars, this will be dependent on the width b/w your short and long strikes.

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