一周一讲：什么是Collar，为什么用Collar, 什么时候用？

[monkeyboy]

I jokingly said HuangMM should inveote 16妈来讲讲，为什么她认为selling covered call is a potection of underlying stock.

这个，连瞎问瞎说这样好脾气的，都被她的胡说八道惹火了。

Anyway，youxi提到了Collar 绝对是一种更好的protection。

我上次和Cindy也提到了她应该用collar to play defense。

这一周的主题我建议就是collar - 什么是collar，为什么用collar，什么时候用collar？

建议就此进行讨论。

[melody2010]

不知道这么fancy 的东西。是不是和straddle正好相反？是不是只有股票在一个trading range 里走才有用。

我偶尔会卖卖covered call, 或者卖far out of the money 的put, 还从来没买过option.

猴哥讲讲什么时候该买option? 我从来没有找到我肯定能大涨大跌而且还不贵的option来买。

[Huangmm]

好期待

[njrookie]

I talked about it b/f on TZLC forum for LM.

[夜来听雨声]

Njrookie, 可以把文章搬这儿来吗？

[monkeyboy]

[njrookie]

LM had some appreciated tech company stocks, but did not want to sell yet. However she was concerned about the macro market condition.

my suggestion:

http://bbs.wenxuecity.com/tzlc/579530.html
http://bbs.wenxuecity.com/tzlc/579541.html
http://bbs.wenxuecity.com/tzlc/579616.html
http://bbs.wenxuecity.com/tzlc/579641.html

just my 2c.

[njrookie]

do not use non-linear contract to express a linear directional view. KISS.

just my 2c.

[monkeyboy]

[monkeyboy]

[monkeyboy]

[njrookie]

for LM's case, maybe company lockup period.

another reason is to shift short-term cap gain to long term cap gain for lower tax rate.

[monkeyboy]

[王金将]

Comments to NJR, your wording is too/very dry, thus hard for people to swallow not to mention digest.

To Monkey Bro, how to get 35/50=70%?

If LM's position is locked, then selling the call, even out of money... wouldn't that be naked?

[Huangmm]

(85-50)/50 got it?

SO bad at math, you need to go back to 2nd grade.

[njrookie]

it is called academic writing, monotone, boring, yet precise ... lol

[王金将]

[392]

I want to own and when it is at depressed level.

在众多高手面前班门弄斧了

[melody2010]

[melody2010]

[人参公鸡]

[njrookie]

option is like a lottery ticket.

who makes money? seller of lottery ticket or buyer?

[melody2010]

[njrookie]

if you do not understand gamma and convexity, you are in no place to trade options.

just my 2c.

[人参公鸡]

Sigh, this makes me dizzy. Can we keep It Simple and Stupid? (KISS)? More complex approaches may not bring higher returns.

旋妹 has KISSed it right. However we still have room to improve in terms of timing, underlying securities, etc.

[njrookie]

these are the very very basics for options. for options simple = stupid.

[ecbb]

[破烂熊]

这些东西太FANCY。策略性的加腿减腿，一不小心腿就会弄得太多，自己把自己整糊涂了。而且口袋要深，耐心要好。２样都没有的直接卖了一了百了。

[njrookie]

I have seen a $2b vol fund with 70% of positions on various strike-time combinations on the entire vol surface of SP500, run by a couple of former Tsinghua Math Olympians.

[破烂熊]

[jeepster]

[人参公鸡]

If this is for stock investment, we can KISS with simple option strategies for income and protection.

If it's for trading options, then we need a different forum. Small fishes don't have an upper hand.

However please keep it on your mind, Goldman/MS/JPM can all see your positions and orders. They have super computer to do HFT and/or create dark pools to trap you. Think you can have an edge against them, think it again.

[njrookie]

"Goldman/MS/JPM can all see your positions and orders. They have super computer to do HFT and/or create dark pools to trap you. "

most of the statement above is not true:

0. smartest people do not work for banks; if you have a good strategy, you work for yourself.
1. they get the same exchange disseminated information I get;
2. biggest HFT option market marker is Citadel;
3. option market does not have to honor queuing, and the speed edge of HFT is small;
4. dark pool is not to trap retail investors. Dark pool is to execute large institutional order without being front run by small HFT orders.
5. you do not have to operate at the frequency of HFT. 99% of institutional money is managed without intraday trading. EOD price is fair game for everyone.

know your facts before making such general statements to cause panics. Lewis is in it to sell a book or maybe a right for a movie.

[人参公鸡]

[njrookie]

[ecbb]

Thanks for the eye-opening discussion, can really learn a lot from all of you. Lucky times!

[人参公鸡]

[njrookie]

if you cannot beat them, then join them. trading has no holy grail, but market has some systematic tendencies. it takes a lot of hard work to accumulate those knowledge. for example,

1. understand the bias created by MM, HTF, etc. pinning at option expiration is a well-know effect and you should anticipate that. same thing for calendar bias. it is only against you if you keep on ignoring the distortion created by MM, instead of taking advantage of it.

2. there is room for small fish, I personally know several who takes home 7-figures year in year out.

3. small fish has it own advantage. big bank and big funds move like elephant. small fish can swim faster. also big banks have huge overheads. small fish is one person shop. costs are very low.

I am not interested in jinsen roosters. keep on the topic so we can all learn and benefit from the discussion.

[ecbb]

[monkeyboy]

[人参公鸡]

[monkeyboy]

[人参公鸡]

[monkeyboy]

[quote="人参公鸡"]Wall St & brokerages keep brainwashing small fishes. This way not only they can lure small fishes' money, they can also generate more business. On the opposite, what if no one plays at casinoes, do they all need to file bankruptcy?

The odd is, most small fishes under-perform the benchmark. Then save yourself some peace of mind. I know many daytraders wake up early (on West Coast!!!) and day-in/day-out. Can we say MOM2016 targetting @ 1% profit a day? LOL.

Anyway, who doesn't like a range-bound market within B. Bands? That's swing traders' paradise.

"Anyway, who doesn't like a range-bound market within B. Bands? That's swing traders' paradise."

I agree, but I like to exploit extreme conditions caused by fear and greed.

我可能是眼神比较差。作为hunter，眼神/枪法只能打打熊，鹿这样的大动物。

象兔子，野鸭这样的小动物，没本事打。

[monkeyboy]

16妈一天1%？

被捉进官里的唐XX也只敢宣称一周1%。

[ecbb]

I don't have a strong stomach, just try to train myself have a stronger heart! Take it as one sort of experience of life.

[quote="monkeyboy"][quote="ecbb"]You sure the ride is not a roller coaster? You've got to have strong stomach.