Seeking Alpha

thorninside

thorninside
Send Message
View as an RSS Feed
View thorninside's Comments BY TICKER:
Latest  |  Highest rated
  • My Investment Strategy For 2013 [View instapost]
    Comes as no surprise actually...given the track record of SA management...
    Jan 9 07:05 PM | Likes Like |Link to Comment
  • What Is The Right Strategy For Apple Now? [View article]
    Kevin I am still waiting on the article you promised "on Thursday" that points out the flaws in Kim's strategy.

    How's that coming?
    Dec 13 03:49 PM | Likes Like |Link to Comment
  • The Issues Of Weekly Options, Risk, And Comments On My Daily Options Strategy [View instapost]
    correct mike
    Nov 24 06:32 AM | Likes Like |Link to Comment
  • The Issues Of Weekly Options, Risk, And Comments On My Daily Options Strategy [View instapost]
    Can you please post your losses as well?
    Nov 22 10:18 AM | Likes Like |Link to Comment
  • The Issues Of Weekly Options, Risk, And Comments On My Daily Options Strategy [View instapost]
    And here is a post relative to guidelines on parameters for proper position sizing:


    http://bit.ly/Qxdylj

    The key is identifying the location on the chart where you are proven wrong... IN ADVANCE of the trade. It needs to be in advance so you can properly be positioned for max loss. And "max loss" should never ever be based simply picking a random number of contracts at a certain entry price-- and then basing your stop loss on a dollar amount or % amount loss that if it occurs-- you exit the trade. The problem with this approach if you are in a call contract is you could be randomly exiting at an area on the chart where extreme demand exists. You want to have that area of extreme pivot demand identified in advance... with a stop below. I prefer .20-.30 below a pivot to avoid a bear trap sweep of where traditional stops are located. So if AAPL is at 600 at entry... with demand at 599... exit the trade if AAPL hits 598.75. This represents $ 1.25 of risk. WIth .90 deltas on options... lets assume based on fill slippage and bid ask spreads your option price will decline exactly by this amount. If your max loss is $ 500... you can get 4 contracts.

    But let's say you choose to enter with more confirmation as AAPL continues to show momentum... and now price is at 601. The only thing that has changed now is stop loss distance.. in this case- $ 2.25. So you must position size accordingly to where if stopped out your RISK IS STILL THE SAME. In this case -- you would only do 2 contracts-- because 2 x 2.25 is $ 450 loss... any more than that would exceed 1R. For simple math purposes- an extreme example would be a very wide stop of $ 5.00 would not allow any more than 1 contract.

    Regardless of the stop loss distance-- here is a key element that MUST be factored in -- reward potential. If you are risking $ 5... you better have a clean chart that shows supply overhead is at least $ 5 away.. preferably $ 10 however for a 1:2 risk: reward profile. You do NOT want to be looking to capture $ 1.00 move with $ 5 risk.

    Hopefully you get the idea.
    Nov 22 09:57 AM | Likes Like |Link to Comment
  • The Issues Of Weekly Options, Risk, And Comments On My Daily Options Strategy [View instapost]
    Please refere to my post below on "how not to take the big loss when something goes against" you:

    http://seekingalpha.co...
    Nov 22 09:47 AM | Likes Like |Link to Comment
  • The Issues Of Weekly Options, Risk, And Comments On My Daily Options Strategy [View instapost]
    Readers there is absolutely no reason whatsoever to use monthlies for a day trading strategy. Please refer to the link below where glworden cut and paste my commentary on this issue:

    http://seekingalpha.co...
    Nov 22 09:40 AM | Likes Like |Link to Comment
  • The Issues Of Weekly Options, Risk, And Comments On My Daily Options Strategy [View instapost]
    All times in EST?
    Nov 22 09:35 AM | Likes Like |Link to Comment
  • The Issues Of Weekly Options, Risk, And Comments On My Daily Options Strategy [View instapost]
    mike3dr-- can you please explain exactly what you mean by the email you just sent me with the following content:


    "Anytime you want to meet up I'm fine with that. I'm in N.Y. I'll be happy to "discuss" this in person with you."

    ???
    Nov 21 02:10 PM | Likes Like |Link to Comment
  • The Issues Of Weekly Options, Risk, And Comments On My Daily Options Strategy [View instapost]
    Of course you aren't.
    Nov 21 01:13 PM | Likes Like |Link to Comment
  • The Issues Of Weekly Options, Risk, And Comments On My Daily Options Strategy [View instapost]
    mmester-- how about just a few detailed trades posted here on this thread-- complete with the detail I listed in prior posts above?
    Nov 21 01:12 PM | Likes Like |Link to Comment
  • The Issues Of Weekly Options, Risk, And Comments On My Daily Options Strategy [View instapost]
    Chasen I assume we wont be hearing from you again? Kevin?
    Nov 21 01:00 PM | Likes Like |Link to Comment
  • The Issues Of Weekly Options, Risk, And Comments On My Daily Options Strategy [View instapost]
    I already know you bought 5 contracts.

    What I also know is price hit strong demand level from 11/19 noon EST actually at 1:30 EST on 11/20... not 1:32. This is one of the big problems with lagging indicator based systems.

    What I also know is you had a huge amount of capital exposure in the market-- over $ 18,225... all to generate less than 1.5% return.

    Had you actually utilized weekly .9 deltas you would've actually only had to commit over 42% less capital.. or about $ 10,500 for 5 contracts... and generated approximately $ 1.00 profit during the same timeframe... which would represent over 4.7% return... of course buying at the proper demand zone area would've generated almost $ 2.00 in profit... or just over 9% return on capital.

    It's good that you aren't concerned with credibility... because until you can produce detailed trade info verifiable by time and sales on what you claim to be a 100% success rate-- your claims are meaningless.... which raises the question-- why even bring it up?

    Thanks Kevin.
    Nov 21 12:59 PM | Likes Like |Link to Comment
  • The Issues Of Weekly Options, Risk, And Comments On My Daily Options Strategy [View instapost]
    Incidentally mike3dr- you would already know that you did not satisfy my questions if you had just checked your SA email.
    Nov 20 12:23 PM | Likes Like |Link to Comment
  • The Issues Of Weekly Options, Risk, And Comments On My Daily Options Strategy [View instapost]
    glworden--

    Thinkorswim has time and sales option info for ALL exchanges.

    There is NO rational explanation other than he entered trades in a simulator- of which of course there would be no record of verification.

    Regardless -- if you look at some of the timeframes he provided -- the chart clearly shows price was in the middle of nowhere and didnt even follow Kevin's system to the tee.

    Once again-- TO DATE-- NOT A SINGLE APOLOGETIC HAS BEEN ABLE TO PROVE ANYTHING.

    What a surprise.
    Nov 20 12:22 PM | Likes Like |Link to Comment
COMMENTS STATS
70 Comments
10 Likes