“I made 100% every week this year for a total return of over 5,000%!” I actually saw that claim made by a trader. Of course the trick was how he was calculating profit – it was simply based upon how much of the initial credit he retained. So, for instance, if he sold a […]
Cynthia Sarver
Change according to Lizzie
One of the great delights I had when living in Belize was hand-raising Lizzie, the Belize Zoo’s baby otter. When she got old enough, a beautiful exhibit was built specially for her, complete with a large waterfall. On top of the waterfall was a bio-filter planted with lovely lilies and an enormous fern. And Lizzie hated that […]
But it’s a Negative Vega Trade!
“But it’s a negative vega trade, so doesn’t it lose money as the underlying goes down?”. File this with the Neiman Marcus cookie recipe, Nigerian scams and Mark Zuckerberg giving away money if you post a thank you. I’m not entirely sure why poor vega got such a bad rap; you never hear someone saying, […]
Trading Truths
When I first started trading complex options, I actually had great success. Eventually, of course, the market handed me my first loss which I dutifully reviewed with a senior trader. The response I got was that it was just a losing trade, that it happens, and I should keep doing what I’d been doing. That […]