current trades

[Litodude]

so today i closed my FEB 15 USO IC 20/22/14/11.5 ya it's a +1/-1 stdev IC (dem fuccen wings brah) and captured a fuckload of theta decay profits before closin early....considering opening up a 21/14 short straddle for mar on it since impvol so high atm but we'll see. everyone's eyes are on oil right now and hopefully it just chilld out for a month lol

also bought to close my DDD 34 call since already captured a fuckload of profit and it dropped like 4 points since i bought it a month ago

opened a long call on CSCO since today's earnings, we'll see if this directional play works in my favor (ned it above 28.41 by tomrrow) if not fuck itttt ayyy lmao

[gold stinger]

I need a translator

[Litodude]

month-to-month rolling short calls generate a net gain of 3% more than just a standard buy/hold strategy of broad-based index funds 68/95/99.7% of the time, depending on your risk tolerance and removing outlying black swan events.

[Litodude]

seriosuly not one chit-chatter that understands financial derivatives sigh

[FF_rules]

I swear you're just googling terms and putting them into sentences

[Litodude]

no ur just retarded

[Arch0wl]

feel bad about not keeping up with this, but I frankly don't have the disposable to make serious investments atm, and if I *did* have the disposable I'd just pay off student loans -- the elimination of which have a much higher ROI re: net worth

with that said

month-to-month rolling short calls generate a net gain of 3% more than just a standard buy/hold strategy of broad-based index funds 68/95/99.7% of the time

this is really impressive, at least to me.

[Litodude]

right?

so you can make a synthetic position by simultaneously buying an at-the-money (ATM) call and selling an ATM put at price X for term Y (X being as close to the price of the actual underlying (say SPY @ 206) and Y being some far off date (say OCT15)). this position simulates actually owning the underlying stock, but for much less since you're only buying the price of the option contracts and not the underlying asset themselves.

with this synthetic position you can then do the aforementioned by writing(selling) an OTM call, month-to-month, around 45 days-to-expiration (DTE) and benefit from the accelerate theta decay as it approaches expiration. obvs you want a stock that has minimal vol and pick something like SPY (why i mentioned it) or qqqq or some other ETF that follows an index since it's harder to VAR an index than an individual stock

[Litodude]

Originally Posted by Litodude

opened a long call on CSCO since today's earnings, we'll see if this directional play works in my favor (ned it above 28.41 by tomrrow) if not fuck itttt ayyy lmao

https://www.google.com/finance?cid=99624

suck me baby

[gold stinger]

litodude confirmed for richest poster on FFR

so rich that people can't understand the secret language used by the top 1%.

[Litodude]

it's funny how you mention that because there's actually a rule used by most brokerages that you have to have a minimum balance of 25k in your account in order to use some of the more capital generating trading strategies like naked puts and futures

if you're trading naked futures then it's like 125k lmao

[Litodude]

trust me bro i came from nothing but personal financial awareness/management is key *****

[Litodude]

Originally Posted by Litodude

it's funny how you mention that because there's actually a rule used by most brokerages that you have to have a minimum balance of 25k in your account in order to use some of the more capital generating trading strategies like naked puts and futures

if you're trading naked futures then it's like 125k lmao

they do this because those trades are considered unlimited risk and 1/20 times you're going to owe $5k on a trade that made 500

[Zapmeister]

i just got rid of a small bunch of dogecoins i got two weeks back


i also traded a bunch of flappy bird coins a week before that even though i haven't played flappy bird in ages and even then i only played on the pc version and my high score was only 79


based on the successes of these two trades i think i should give up my masters degree and become a professional crypto swing trader

EDIT: in case it wasn't clear, there are supposed to be pictures in this post. sometimes when i load this page to see new posts one or both of them just don't show up. >.<

[Litodude]

cryptocurrencies are a shot in the dark by a blind person and inane

[Zapmeister]

but i thought you bought some bitcoins a while back

[Litodude]

i have a shotgun

[Litodude]

lol do u hear how dumb flappy coins sound lmao jesus christ i can't even take this seriously

i was going to write a response about diversification of assets but lmfao

[Arch0wl]

Originally Posted by Litodude

cryptocurrencies are a shot in the dark by a blind person and inane

I agree with this for the most part, but if you have a shit ton of disposable to burn (like, 300k) you could literally blindly invest $1000 in every alt-crypto and if even one is widely adopted you've made ... well, assuming you could trade it for bitcoins and cash out, a fuckton. every other investment would be a complete blowout, though. it's not unlike playing the lottery on a much smaller scale.

actually, it'd be like penny stock investing but to a much more exaggerated degree, since some cryptocurrencies start out at something like $0.0001 per coin.

with that said, this is an extremely dumb idea if you don't have a lot of money to blow.

I mean, I'm in no position to invest right now, so obviously I haven't done this, it's just been something I thought about ever since I saw the rise of litecoin.

[Litodude]

Originally Posted by Arch0wl

I agree with this for the most part, but if you have a shit ton of disposable to burn (like, 300k) you could literally blindly invest $1000 in every alt-crypto and if even one is widely adopted you've made

that same exact thought process has been applied before using pink sheets and it also doesn't work. you can think of that strategy like investing in pre-pre-emerging foreign currencies, and buying all of them at the same time. yes statistically, at some point, you will be able to generate a profit individually but over the lifetime of the underlyings you will lose money.

i'm sure with enough patience, notifications, bells, whistles, candle-charts, and whatever the fuck else you believe in, you can make a profit but that's just ttly inefficient as fuck.

there isn't even a derivatives market for it yet, you can't do anything fun except buy and wait patiently