Friday, May 28, 2010

5/28 Weekly Summary

Ok, I've been absent for a few days, so here is my 5 minutes review of the week: while I don't think it is business as usual, I can point to a few indications that it is much calmer than it was a few weeks back. Look at the daily chart, we only had a few bigger than 1 st. deviationd days in the past 10 days, compared to how it was 20 days ago, it is much better. Also, the 5 day chart seems to be showing to some sort of consolidation, meaning we're not totaly biased to one side of the chart. All that being said, I'm glad I'm no longer with positions opened, but at the same time am looking for ways to stay connected, perhaps some backtesting? Or even a review of past trades, capturing some lessons learned along the way.


Anonymous said...

First off, that was a great trade, quick and painless. I have a couple of questions, why is your goal 10 percent and at what delta do you start to cut and roll the in the money short options?

Gustavo's Trades said...

Hi there, I keep my goal with 10% because in the past that seems to be a good number, meaning it is doable and fairly quickly..

One can aim for more, but based on my backtesting and live trading this goal seems to be a good one to shoot for.

As far as delta, I cut and roll them when they're around 65.. With the NDX this seems to be just about the right time. Then again, not a hard rule, more a guideline.. I first hedge the trades, and when I see our deltas getting out of control I look for cut and rolling. This also has to do with my target profit for the month, for the past two months I've been managing with a "game plan" map, where I look for each adjustment and their impact on when the goal gets reached..