200k New Money
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Great! Thanks ! I don’t want to sound like a trader. Traders and advisors are completely different ends of the spectrum. You are trying to do both and that is suicide.
You have an account that was up 19% last year? LOL. If so, you are either extremely lucky or an absolute wizard. If you can continue to beat the index by 50% you will become the greatest investor the world has ever seen. That is comical.[quote=Ron 14]Great! Thanks ! I don’t want to sound like a trader. Traders and advisors are completely different ends of the spectrum. You are trying to do both and that is suicide.
You have an account that was up 19% last year? LOL. If so, you are either extremely lucky or an absolute wizard. If you can continue to beat the index by 50% you will become the greatest investor the world has ever seen. That is comical. [/quote] Certain of my accounts have beaten the S&P by 50%. The ones that are hurting are the ones I sold the "buy and hold" strategy to.Not lucky at all. When the market is tanking I go short by selling calls and shorting against the box. No big mystery. Making money for my clients by trading is suicide?
I bet you just got your CFP Mr. ten years in the pit (huge sarcasm) Here is a tip for you Nostradamus, now I'm selling puts on blue chips.Oh, ok, its that easy, when the market is tanking I just jump on the wave because it is sure to continue down. I cant believe I missed that.
And if you are this good at trading the intraday market movements you should put up your own cash or find a backer and keep the money for yourself. Why prospect and deal with clients and long term goals and all that crap?
[quote=Gaddock]Not lucky at all. When the market is tanking I go short by selling calls and shorting against the box. No big mystery. Making money for my clients by trading is suicide?
I bet you just got your CFP Mr. ten years in the pit (huge sarcasm) Here is a tip for you Nostradamus, now I'm selling puts on blue chips.[/quote] Ron works at Jones. Options are crazy risky voodoo investing. He thinks selling a put is getting cash for a club in your golfbag.If you have the movements pegged you should be selling the highest delta options with the most premium and you should have sold them months ago before time decay took place. You guys are geniuses, so I am sure you sold the SPX March 700 put with large amounts of meat on the bone because you knew we would settle just above it and it would then be worthless. Creating windfalls for your clients and very little for yourself ! LOL !
Thanks Sam that explains it. Here it is ronnie boy, the bottom line. You can call yourself a financial planner or a wealth manager or whatever pretentious bullsh*t you can concoct, you know? like the ten years you spent in the pits, LOL! Me, I'm just a simple securities broker.
You can plan all you want ....IF YOU'RE NOT MAKING MONEY FOR YOUR CLIENTS THE ONLY THING YOU CAN PLAN ON IS POVERTY.
I'm not day trading, I'm swing trading. My average position is about six weeks and makes 2% (ish) by trading around core positions. Again, I don't take a trade unless it has an 85% probability of success. If it's not producing it gets kicked then and there. I study gaming theory, not I'm a shiny egotistical wealth manager 101. I would bet ten to one you have no CLUE what the probabilities of any of your positions are, mr. "ten years in the pits" What's the average hedge ratio on your accounts? mine are under 15 have you ever heard of a hedge ratio? Again douchbag, I'm selling puts on blue chips. Go buy the book called making money for dip sh*ts. Do your clients a favor.[quote=Ron 14]
you should have sold them months ago before time decay took place. [/quote]
You idiot. You want time decay on your side you don't sell them months out, FYI.One last lesson for you, moron. The inverse of the Delta is one measure of the probability of that trade. "selling the highest delta options" gives you the lowest probabilities. Didn't they teach you that in your ten year tenure in the "pits"you should be selling the highest delta options with the most premium
[quote=Gaddock][quote=Ron 14]
you should have sold them months ago before time decay took place. [/quote]
You idiot. You want time decay on your side you don't sell them months out, FYI. [/quote] Yes. Exactly. The time decay wont happen as quickly with an option 6 months out as an option 1 month out, but the overall option price of a Dec 09 15 delta put is much higher than a Jun 09 15 delta put, so why not sell the one with the highest value if the ODDS are in your favor ? Can you understand that you would profit more by selling a put for $15 vs. $1.5 if they are both expiring worthless ?[quote=Ron 14][quote=Gaddock][quote=Ron 14]
you should have sold them months ago before time decay took place. [/quote]
You idiot. You want time decay on your side you don't sell them months out, FYI. [/quote] Yes. Exactly. The time decay wont happen as quickly with an option 6 months out as an option 1 month out, but the overall option price of a Dec 09 15 delta put is much higher than a Jun 09 15 delta put, so why not sell the one with the highest value if the ODDS are in your favor ? Can you understand that you would profit more by selling a put for $15 vs. $1.5 if they are both expiring worthless ?[/quote] Yes but think about RISK. You may get more premium out there but I can sell the same thing 6 times with the strongest time decay and make far more than your 1 sell example. WITH FAR LESS RISK. Not to mention the Greeks begin to distort beyond three months out and are all but worthless 6 months out. Before I take a position; It must be a position that I want in the context of the portfolio, rates an 8, 9 or 10 on my screener and have a stable dividend. 1) the delta must -15 or lower i.e. 85% or better of expiration and less than 90 days out. The shorter the better. 2) Stock must be over a clear area of support 3) the strike price has to be at least 3 standard deviations from the stock price. 4) An active chain that will allow one to roll out if necessary. 5) Any one trade in and of it self is not relevant win loose or draw. 6) If we get assigned we aggressively write calls The probabilities on any one trade mean nothing but over the larger sample nine of ten expire. You can read about my arbitrage trades in what people are buying thread. Schools closed.It is only a matter of time before an expiration week becomes so volatile that it starts your strategy on fire and the price to "roll out" will be so steep that your assessment of risk will be permanently changed.
I guess we will have to wait for your book to come out - Options Swing Trading, Your Ticket to Beating the Index by 50%! Strategies from the Worlds Smartest Investor, Guru Gaddock. For you to assume I was talking about in the money options proves your a goon. In the money options are never even quoted on the exchange floor unless someone is trying to take a large position in the underlying.Which one am I, you clown? Managed money or American Funds? American Funds isn’t even part of the managed money platform at my firm. And no, I am not at Jones, although it was mentioned that I am. I know you were talking about out of the money options, so was I! When I said high delta you assumed I was talking about in the money options and flipped your lid ,like a tough guy as you hide behind your monitor.
You still haven't answered the question ? Why the hell would you not just trade options on your own using these great strategies. Sit at your computer, trade it up for a few hours a day, and head home with all of the profits.“like a tough guy as you hide behind your monitor” What’s your problem sport? all full of piss an vinegar aren’t you. I’m damned sure not hiding from the likes of you. If you feel the need to pursue that line you can PM me with your intentions and I’ll be happy to oblige them.The only assumption I’ve made during this entire conversation is that you’re a yappy little prick that’s been molded by a cookie cutter. You go on with the Ameriprise party line and your clients will love you LOL. This is the last post and time I’ll be wasting on you. If you were not such a bullheaded jackass you may have been able to learn something.
All this coming from a Jones flunky washout....sigh. Had I know that from the start I would have simply patted you on the head and wished you good luck.Read your posts! I’m all full of piss and vinegar? You called my douchbag, idiot, and moron on different occasions just because I disagreed with you. Now I’m at Ameriprise and I flunked out from Jones? LOL. If you live in the Chicago area or will be traveling here soon, please let me know, Ill meet you at the airport. BTW, I live closer to Midway if that helps.
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View Post Wrestling with EJ
Posted: July 15 2008 at 1:34pm Yes, I am failing to pay my bills by selling financial products door to door.