A good book for learning some play set ups.Originally Posted by DSchles
Thanks. I'll really have to look into that, and see if I can learn anything.
Don
https://www.amazon.com/Simple-Option.../dp/0615946216
It's not one of those hogwash magic system books. It just discusses and shows how to run some option plays beyond the basic single call or put.
You are, of course, missing the point. Mine was that I anticipated the downturn and wanted to hedge before it occurred. Do you understand the difference? And, of course, you are also completely wrong when you state, "I didn't lose a dime because I didn't sell." What a naive way to look at things. When you're winning $1,000 during a session, do you now consider that's "house money" and not really yours until you cash in? If you lose it back, did you not really lose anything? If you get a month-end statement that says your account is worth $100,000 at the end of July but $50,000 at the end of August, do you really consider that you didn't lose anything? Shame on you for thinking that way.
Don
For 63 years, from 1950 to 2013, there was an incredible statistic that many found very hard to believe. Go here: https://www.investopedia.com/terms/s...nd-go-away.asp
Basically, virtually ALL the returns for the stock market were garnered for the six-month period from November through April (7.5%). May through October yielded a paltry 0.3%, which was so much less than having your money in T-Bills (and with NO volatility, to boot), that this naive but highly effective "market timing" strategy allowed you higher returns than being invested all year, lower volatility (standard deviation), and, therefore, a much higher Sharpe ratio than being invested for all 12 months of the year.
Since 2013, there has been a lessening of the trend, and it no longer is considered as profitable, but 63 years was a LONG, LONG ride.
Don
Don - one thing you're not mentioning is the significant tax consequences of following a timing strategy, rather than just buying and holding from year to year.
I used to actively trade options. During the QE (no, not Queen Elizabeth) period, I sold SPY (or SPX) puts and added an additional 5-7%/year to my return. Now, my nest egg is multiples beyond my needs, so I stopped the options trading, which required close monitoring. Now I am mostly in index funds.
Many of posters here seem to be experts at market timing! There are more than few time at the BJ tables I met a BJ timing "experts". There was one always said "I knew it" regardless he win or lost the hands. Other time, a player always tell other players "If you stand or hit or what not the dealer could busted and table could win". There was a player after the round was over she said "I should do ...." you fill in the blank. At one time when a player talked to much about "I could, I should, I would" to the point I so irritated so I said "I do not drive car by looking at rear mirror"
Yeah, I must say I don't know anyone here. If not mistaken you're the author of BJ Attack which seems to have high praises everywhere. For that alone you have my highest respect (ordered my copy yesterday BTW). My book link wasn't meant to be demeaning, it was really just directed to anyone on here who hasn't ventured into the option world yet. I'm probably the newest member of this forum, and am here to keep ears open and learn all I can.
Fair enough. Here's a little background from outside the blackjack word.
Donald Schlesinger is the President of Demand Derivatives Corp.Prior to the merging of the individual product companies under the DDC corporate umbrella, he was instrumental in directing the companies separately.
Donald Schlesinger was the Vice Chairman and Chief Strategy Officer of The VolX Group Corporation and RealDay Options Corporation — after a period of semi-retirement. Before this he was an Executive Director in Morgan Stanley Dean Witter’s Worldwide Equity Derivatives department. As the Director of Derivatives Education and Training, some of Don’s responsibilities included the creation, supervision, and delivery of in-house programs, as well as educational seminars for clients. In 1993, Don helped establish and perfect risk-management techniques and systems for global equity derivatives traders at the firm. Schlesinger was a member of the Institutional Equity Division’s derivatives risk-management committee and served as a liaison between that unit and the firm’s head of global risk management.
Prior to assuming these roles, he was a Proprietary Trader and Options Strategist at Morgan Stanley, from 1984 to 1994, where he managed the firm’s domestic over-the-counter options book and priced structured products for clients. Schlesinger has lectured extensively on options theory and hedging techniques, having participated in many industry-sponsored events, and has written numerous published papers and articles on options strategies. Among them are: “Options Alphabet Soup,” “Looking Askew at Volatility,” “Hedging First- and Second-Order Sensitivities of Options” (“Learning Curve” article in Derivatives Week), “Volatility Cones Come in Many Flavors” (co-authored with Robert Krause, for Futures Magazine), “Hedging Imperfect Baskets” (co-authored with Robert Krause, for Derivatives Strategy magazine), and “Volatility Trading: RealVol futures Jump into the Mix” (co-authored with Robert Krause, for Swiss Derivatives Review).
In 1996, Don was part of the third-place “All-America Research Team,” named by Institutional Investor, which commented: “The group’s ‘top notch’ educational seminars, under the direction of Donald Schlesinger, demystify derivatives, according to a participant.” In 1991–92, Schlesinger was the featured speaker in over 100 presentations of Morgan Stanley’s PERCS product to institutional clients in the U.S. and Europe.
Since leaving the firm, Don has continued to lecture at Morgan Stanley, and has also done training and presentations for Goldman Sachs, Lehman Brothers, Deutsche Bank, Credit Suisse First Boston, the Options Industry Council, and Electronic Trading Group.
As a former teacher in the New York City school system, Schlesinger taught high school-level mathematics and French for 16 years. He holds Master of Philosophy and M.A. degrees in French from the City University of New York, and a B.S. in mathematics, cum laude, from The City College of New York.
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