tag:blogger.com,1999:blog-5375291312433129989.post8238607649553877354..comments2023-06-03T05:06:58.216-04:00Comments on The Lazy Trader: Weekend Portfolio Analysis (04-21-2013)Henrikhttp://www.blogger.com/profile/05792195649092816606noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5375291312433129989.post-51025073643723314232013-04-21T20:37:32.545-04:002013-04-21T20:37:32.545-04:00Hey Jonathan,
Good questions.
1 - I started apply...Hey Jonathan,<br /><br />Good questions.<br />1 - I started applying my own trade ideas after the third or fourth month of demo - trading last year. I don't remember exactly when. But I have kept the idea of a model portfolio of $10000 first to hopefully help folks out there with smaller accounts and show it is possible, second to have it easier while doing the maths. <br /><br />2 - Your suggestion is valid. It's only a personal choice. I prefer to start decreasing the number of open positions or not start new ones when we are 3 weeks to expiration. A more aggressive trader could follow your idea. So, while I'll be closing one Bull Put spread and only leaving open another Bull Put spread and a bear call spread, in your case you would have two Iron Condors. That's fine, obviously aiming or higher returns at a higher risk. It comes down to your risk tolerance really.<br /><br />3- RUT. Yes, it looks good now. But It's only the fact that I like to have a balance risk to both sides of the markets. Right now there are two positions to get hurt on the downside vs only one to the upside. RUT's spread in particular, at 5% below current price, that could be achieved with a bad week for SPX, let's say a -3% SPX and this position could be feeling the pressure. Again not that big of a problem as if that happens, Options premiums will be inflated allowing a nice adjustment. It's really the first part of the argument: unbalanced exposure to one side of the markets, and one of the positions at a distance that according to my judgment is not so far.<br /><br />4- I have absolutely thought of that. Closing at a certain profit to avoid exposure. The reason I try to take positions to exp. is the fact that Canadian traders don't have it easy when it comes to commissions costs (that's also the reason why I assume a $1.50 per contract schema) US folks definitely are at a huge advantage in this respect and I definitely encourage closing in advance if you enjoy a good commissions scheme.<br /><br />Thanks for your words, they keep me motivated.<br />Cheers!The Lazy Traderhttps://www.blogger.com/profile/08598866019359750526noreply@blogger.comtag:blogger.com,1999:blog-5375291312433129989.post-22189068835843755262013-04-21T12:27:58.799-04:002013-04-21T12:27:58.799-04:00Hendrick,
I love reading your weekend analysis of...Hendrick,<br /><br />I love reading your weekend analysis of the market, your current positions and your plan for next week. Some questions:<br /><br />1. Are you using real money or are these still demo trades?<br /><br />2. Why not sell a SPX May bear call spread to iron condor with your bull put spread later this week if SPX goes up to 1570? You will not need additional margin. While the credit will be much less since this is less than 30 days to expiration, you can get a better return for the whole position. <br /><br />3. Your RUT 850/855 seems pretty 'safe' right now. If I had that position, I would look to take it all the way to expiration. But that is just me.<br /><br />4. One other thing you can consider doing is to close your positions early when you have 80% or more of the maximum profit. It is not worth it to try to collect a few more pennies.<br /><br />Keep up the great work.Jonathanhttps://www.blogger.com/profile/14635010979050643513noreply@blogger.com